2 ASX dividend stocks for income investors to buy and hold

Let's see why analysts think these shares could be top picks for income investors.

| More on:
A man points at a paper as he holds an alarm clock.

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

The good news for income investors is that there are plenty of ASX dividend stocks for them to choose from on the Australian share market.

For those that are looking for buy and hold options, the two dividend shares listed below could be top picks.

Here's what analysts at Bell Potter are saying about these shares right now:

Accent Group Ltd (ASX: AX1)

The first ASX dividend stock to consider as a buy and hold investment is Accent Group. It is a leading retailer in Australian leisure footwear through its large portfolio of store brands. This includes HypeDC, Platypus, The Athlete's Foot, Style Runner, and Sneaker Lab.

In addition, Accent is making strategic moves into the youth fashion market with brands such as Glue Store and Nude Lucy.

The team at Bell Potter is very positive on the company,. It highlights the company's market leadership and expansion potential. The broker stated:

We continue to view AX1 as a key pick in our retail sector coverage given their scale as Australia's market leader, growth adjacencies in both footwear/apparel from exclusive partnerships & TAF channel conversion, and growing vertical brand strategy led by Nude Lucy.

As for income, Bell Potter has pencilled in fully franked payouts of 13.7 cents per share in FY 2025 and 15.6 cents per share in FY 2026. Based on its latest share price of $1.86, this equates to dividend yields of 7.4% and 8.4%, respectively.

The broker has a buy rating and $2.75 price target on Accent's shares.

Elders Ltd (ASX: ELD)

Another ASX dividend stock that could be a top buy and hold option is Elders.

It is a leading agribusiness company that provides the agricultural sector with a range of products and services.

Bell Potter is also very bullish on Elders. It highlights the company's attractive valuation and recent acquisition as reasons to be positive. The broker said:

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.

In respect to dividends, Bell Potter is forecasting fully franked dividends of 41 cents per share in FY 2025 and then 43 cents per share in FY 2026. Based on its current share price of $7.13, this equates to dividend yields of 5.75% and 6%, respectively.

The broker has a buy rating and price target of $9.45 on Elders' shares.

Motley Fool contributor James Mickleboro has positions in Accent Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group and Elders. 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

A man with a wry smile on his face is shown close up behind ascending piles of coins as he places another coin on top of the tallest stack representing rising dividends
Dividend Investing

Here are the 3 biggest dividend payers in my ASX stock portfolio today

These three stocks pour cash in to my portfolio...

Read more »

A senior investor wearing glasses sits at his desk and works on his ASX shares portfolio on his laptop.
Dividend Investing

Overinvested in Fortescue shares? I'd buy these ASX dividend shares

Fortescue may not be the best choice for dividend income.

Read more »

Close up of woman using calculator and laptop for calculating dividends.
Dividend Investing

Forget term deposits! I'd buy these two ASX 200 shares instead

I’d rather buy these stocks for income than hold a term deposit right now.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Dividend Investing

Forget CBA shares and buy these ASX dividend shares

Analysts are bearish on CBA but bullish on these shares.

Read more »

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

Own IVV ETF or other iShares ASX ETFs? Next dividends and DRP prices revealed…

BlackRock has announced the next lot of dividends for its iShares ETFs, as well as the DRP prices.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Dividend Investing

How are these passive income investors earning a 7.5% dividend yield on their surging CBA shares?

CBA shares are proving more lucrative for some passive income investors than others.

Read more »

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
Dividend Investing

3 excellent ASX dividend shares to buy with $2,500

Brokers think these shares could be in the buy zone for income investors.

Read more »

A woman sits in a quiet home nook with her laptop computer and a notepad and pen on the table next to her as she smiles at information on the screen.
Opinions

2 top ASX passive income stocks to buy with $5,000 today

I think these leading ASX passive income shares will keep delivering market beating yields in FY 2026.

Read more »