Are you wanting to make new additions to your income portfolio in January?
If you are, then it could pay to listen to what analysts are saying about the ASX dividend stocks in this article.
They have recently been named as buys by analysts and tipped to offer attractive dividend yields. Here's what you need to know about them:
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Elders Ltd (ASX: ELD)
The team at Bell Potter thinks that agribusiness company Elders could be an ASX dividend stock to buy in January.
It was pleased with the recent announcement of a new acquisition and feels it is another reason to buy. Especially given its belief that the market is underestimating the synergies on offer with the acquisition. Outside this, it thinks that Elders' shares are trading at a discount to fair value. The broker explains:
Our Buy rating is unchanged. The acquisition of delta looks a relatively low-risk stepout with upside to the synergy target based on the 15% ROIC target (i.e ~$70m EBIT vs. 3yr target of ~$55m) largely through increased backward integration in crop protection. Trading at ~7.4x PF25e EBITDA, ELD trades at a reasonable discount to its through-the-cycle EBITDA multiple of 8.5x.
Bell Potter is expecting Elders to pay fully franked dividends of 38 cents per share in FY 2025 and then 43 cents per share in FY 2026. Based on the current Elders share price of $7.23, this will mean dividend yields of 5.25% and 5.95%, respectively.
The broker has a buy rating and $9.45 price target on its shares.
Smartgroup Corporation Ltd (ASX: SIQ)
Another excellent ASX dividend stock for income investors to consider buying in January is Smartgroup.
It is an industry-leading provider of employee benefits, end-to-end fleet management, and software solutions. Smartgroup currently has over 400,000 salary packages and 64,000 novated leases under management.
Bell Potter is also positive on the company. It believes its shares are undervalued, particularly given its defensive qualities and favourable industry tailwinds. The broker said:
Our favourable investment view is predicated on: (1) defensive customer segments with strong forecast occupational growth within the disability and aged care services; (2) the Electric Car Discount Bill (2022) which exempts new energy vehicles from Fringe Benefits Tax; and (3) a greater availability and selection of new energy vehicles, particularly in the mid-to-large Sports Utility segment.
In respect to income, Bell Potter is forecasting fully franked dividends of 59.7 cents in FY 2025 and then 62.7 cents in FY 2026. Based on its current share price of $7.74, this will mean big dividend yields of 7.7% and 8.1%, respectively.
The broker currently has a buy rating and $10.00 price target on Smartgroup's shares.
