3 excellent ASX dividend stocks to buy with $3,000

Analysts think these shares could be top picks for your hard-earned money.

| More on:
A man and woman high five each while sitting down after working out at the gym.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you have $3,000 to invest and you're looking for dividend income, then the ASX dividend stocks below could be worth considering.

These stocks have been rated as buys by analysts and are expected to offer solid dividend yields in the coming years. Let's take a closer look.

Cedar Woods Properties Limited (ASX: CWP)

The first ASX dividend stock that could be worth buying with your $3,000 according to analysts is Cedar Woods. It is one of Australia's leading property developers, with a diversified portfolio spanning geography, price points, and product types.

The team at Morgans rates the company highly. Its analysts believe Cedar Woods is well-positioned for double-digit profit growth this year. They note that "looking forward, the signs are positive, with guidance for +10% NPAT growth in FY25, supported by favorable operating conditions in most key states."

The broker expects this to support dividend payments of 27 cents per share in FY 2025 and then 33.3 cents per share in FY 2026. Based on its current share price of $5.32, this equates to yields of 5.1% and 6.3%, respectively.

Morgans has an add rating and $6.70 price target on Cedar Woods shares.

Endeavour Group Ltd (ASX: EDV)

Over at Goldman Sachs, its analysts believe that Endeavour Group is an ASX dividend stock to buy with your $3,000.

Endeavour is the leader in the Australian alcohol retail market through its well-known brands, Dan Murphy's and BWS. In addition, Endeavour owns ALH Hotels, which operates over 350 licensed venues across the country. It also boasts over 4.5 million members of its My Dan's loyalty program.

Goldman expects this to underpin fully franked dividends of 19 cents per share in FY 2025 and then 22 cents per share in FY 2026. Based on the current Endeavour share price of $4.11, this implies dividend yields of 4.6% and 5.35%, respectively.

It has a buy rating and $5.10 price target on Endeavour shares.

Universal Store Holdings Ltd (ASX: UNI)

Finally, Bell Potter thinks youth fashion retailer Universal Store could be a great ASX dividend stock to buy with your $3,000.

The broker believes Universal Store's shares offer good value given its positive growth outlook. It recently highlighted the company's strengths, stating that "the store roll-out & brand growth strategy, margin expansion via private label product penetration (currently ~46%), and strong earnings trajectory make Universal Store an attractive investment."

Bell Potter expects the company to pay fully franked dividends of 31.4 cents per share in FY 2025 and 36.8 cents per share in FY 2026. Based on the current Universal Store share price of $8.09, these translate to dividend yields of 3.9% and 4.5%, respectively.

The broker currently has a buy rating and $8.85 price target on Universal Store shares.

Motley Fool contributor James Mickleboro has positions in Endeavour Group and Universal Store. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

With an 8% dividend yield, should I buy Woodside shares for their passive income?

A leading expert offers his take on Woodside shares and the passive income on offer.

Read more »

Male hands holding Australian dollar banknotes, symbolising dividends.
Dividend Investing

Own Vanguard ASX ETFs? Here's your next dividend and when it's coming

Vanguard has revealed the estimated dividends and payment date for scores of its ASX ETFs today.

Read more »

Excited couple celebrating success while looking at smartphone.
Dividend Investing

Analysts expect these ASX dividend stocks to offer 5% to 7% yields

Let's see which shares are being tipped as buys for income investors.

Read more »

2 workers standing in front of a wind farm giving a high five.
Dividend Investing

Is the AGL share price a buy for passive income?

Can this energy business provide strong dividend income?

Read more »

Happy couple enjoying ice cream in retirement.
Dividend Investing

Buy these ASX dividend shares for big yields

Analysts expect these buy-rated shares to offer very generous yields.

Read more »

guy helping girl invest in shares and dividends
Dividend Investing

1 ASX dividend stock down 22% I'd buy right now

This business could provide everything that cautious income investors are looking for.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Big dividends: A 7% ASX ETF to buy for income this week

This ETF is a great choice when you can't find anything else...

Read more »

A woman sits at a table with notebook on lap and pen in hand as she gazes off to the side with the pen resting on the side of her face as though she is thinking and contemplating while a glass of orange juice and a pair of red sunglasses rests on the table beside her.
Dividend Investing

The smartest ASX dividend shares to buy with $3,000 right now

These businesses offer a pleasing dividend yield and great value.

Read more »