Income investors might want to check out the ASX dividend stocks in this article if they are looking for new additions in 2025.
That's because analysts are tipping them as top buys ahead of the new year. Let's see what they are recommending:
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Challenger Ltd (ASX: CGF)
Goldman Sachs thinks that annuities company Challenger could be an ASX dividend stock to buy. The broker currently has a buy rating and $7.82 price target on its shares.
It likes Challenger due to its "exposure to the growing superannuation market" and its belief that "higher yields should drive a favorable sales environment for retail annuities."
Goldman is expecting this to support the payment of fully franked dividends of 27 cents per share in FY 2025 and then 28 cents per share in FY 2026. Based on the current Challenger share price of $6.01, this will mean dividend yields of 4.5% and 4.65%, respectively.
DEXUS Property Group (ASX: DXS)
Analysts at UBS are bullish on Dexus Property Group and believe it could be another ASX dividend stock to buy. The broker has a buy rating and $8.86 price target on its shares.
Dexus Property Group is one of Australia's leading fully integrated real estate groups. It manages a high-quality Australasian real estate and infrastructure portfolio valued at $54.5 billion. The Dexus platform includes the Dexus investment portfolio and the funds management business.
UBS expects this platform to support the payment of dividends per share of 37 cents in FY 2025 and 38 cents in FY 2026. Based on the latest Dexus share price of $7.10, this will mean yields of 5.2% and 5.35%, respectively.
Smartgroup Corporation Ltd (ASX: SIQ)
Finally, Bell Potter thinks that Smartgroup could be an ASX dividend stock to buy. Its analysts currently have a buy rating and $10.00 price target on its shares.
Smartgroup is an employee management services provider. It offers services such as salary packaging and fleet management to organisations across Australia.
Analysts at Bell Potter believe that "SIQ looks well priced given a fwd P/E of ~14.5x, a defensive client base, earnings tailwinds from the Electric Car Discount Bill (exempts low or zero emission vehicles from Fringe Benefits Tax), an ROE of ~30% and a strong balance sheet."
In respect to dividends, the broker is forecasting fully franked dividends of 53.3 cents in FY 2024 and then 59.7 cents in FY 2025. Based on its current share price of $7.63, this means big potential dividend yields of 7% and 7.8%, respectively.
