Are you looking for some top options for your income portfolio? If you are, then it could be worth taking a closer look at the buy-rated ASX dividend stocks in this article.
Let's see why analysts are tipping them as buys:
APA Group (ASX: APA)
The first ASX dividend stock that could be a buy is APA Group.
It is a leading Australian energy infrastructure business that owns a $27 billion portfolio of gas, electricity, solar and wind assets.
It is one of the most reliable dividend payers on the Australian share market. For example, the company is on track to increase its dividend for the 20th year in a row.
The team at Macquarie expects this trend to continue and is forecasting increases to 57 cents per share in FY 2025 and then 58 cents per share in FY 2026. Based on the current APA Group share price of $7.38, this equates to 7.7% and 7.85% dividend yields, respectively.
Macquarie has an outperform rating and $8.14 price target on its shares.
Elders Ltd (ASX: ELD)
Another ASX dividend stock that could be a quality pick for investors this month is Elders.
It is a leading Australian agribusiness that provides specialist knowledge and tailored advice across a broad range of agricultural products and services.
Bell Potter thinks that Elders could be a top buy for income investors. Particularly given its attractive valuation. The broker highlights that Elders currently trades at 7.4 times estimated FY 2025 EBITDA, which is a discount to its long-term average multiple of 8.5 times.
In respect to income, Bell Potter is forecasting fully franked dividends of 41 cents per share in FY 2025 and 43 cents per share in FY 2026. Based on the current Elders share price of $7.07, this equates to dividend yields of 5.8% and 6%, respectively.
Bell Potter currently has a buy rating and $9.45 price target on its shares.
HomeCo Daily Needs REIT (ASX: HDN)
A final ASX dividend stock to look at buying this month is HomeCo Daily Needs REIT.
It is a real estate investment trust (REIT) owns and operates a portfolio of convenience-based retail assets, including neighbourhood shopping centres and large-format retail properties.
These properties are rented to some of the biggest players in the game such as Coles, Woolworths, and Wesfarmers. This has underpinned a sky high occupancy rate of 99% since its IPO five years ago.
Management isn't settling for this. It has identified a development pipeline of $650 million+ targeting ~7%+ ROIC. This bodes well for the future and partly explains why Morgans is bullish on the company.
In addition, the broker is expecting HomeCo Daily Needs to pay dividends of 8.5 cents per share in FY 2025 and then 8.7 cents per share in FY 2026. Based on the current HomeCo Daily Needs share price of $1.19, this implies dividend yields of 7.15% and 7.3%, respectively, for investors.
Morgans currently has an add rating and $1.36 price target on its shares.
