These generous ASX dividend stocks could rise 20% to 30%

Analysts think these shares would be top picks for income investors right now.

| More on:
Excited couple celebrating success while looking at smartphone.

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

Are you looking for some new ASX dividend stocks to buy? If you are, then it could be worth checking out the three named below.

They have been rated as buys by brokers and are expected to provide investors with major upside and attractive dividend yields in the near term. Here's what you need to know:

Endeavour Group Ltd (ASX: EDV)

The first ASX dividend stock that could be a buy is Endeavour Group. It is the leader in the Australian alcohol retail market through its popular store brands Dan Murphy's and BWS. It also owns the ALH Hotels business, which has over 350 licensed venues across the country.

The team at Morgan Stanley thinks Endeavour would be a top option for income investors. The broker has an overweight rating and $5.30 price target on its shares. This implies potential upside of 32% for investors.

As for income, it is expecting the company to pay fully franked dividends of 19 cents per share in FY 2025 and then 21 cents per share in FY 2026. Based on the current Endeavour share price of $4.00, this will mean dividend yields of 4.75% and 5.25%, respectively.

National Storage REIT (ASX: NSR)

Another ASX dividend stock that analysts think income investors should be buying is National Storage. It is the largest self-storage provider in Australia and New Zealand. It has over 250 locations providing tailored storage solutions to over 97,000 residential and commercial customers.

The team at Citi is positive on the company and currently has a buy rating and $2.70 price target on its shares. This suggests that upside of 22% is possible from current levels.

In respect to dividends, the broker is forecasting payouts of 11.3 cents per share in FY 2025 and then 11.8 cents per share in FY 2026.  Based on its current share price of $2.20, this equates to dividend yields of 5.1% and 5.35%, respectively, for income investors.

Stockland Corporation Ltd (ASX: SGP)

Finally, the team at Morgan Stanley is also positive on Stockland and thinks it could be an ASX dividend stock to buy right now.

It is one of Australia's largest diversified property companies with a specialty in residential communities, land lease communities, town centres, logistics, and office real estate. Morgan Stanley recently named Stockland as its preferred exposure to the residential market and sees it as a good option for when interest rates fall.

The broker has put an overweight rating and $6.50 price target on its shares. This implies potential upside of approximately 30% over the next 12 months.

As for dividends, the broker is forecasting payouts of 25.4 cents per share in FY 2025 and then 29.3 cents per share in FY 2026. Based on the current Stockland share price of $5.02, this represents dividend yields of 5% and 5.8%, respectively.

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Endeavour 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 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

Smiling business woman calculates tax at desk in office.
Dividend Investing

Turn tax return into passive income with these ASX dividend shares

These options can bring solid returns through passive income. 

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

Forget term deposits, these ASX dividend shares offer ~5% to 11% yields

Analysts think these shares could be better than term deposits. Let's find out what yields they offer.

Read more »

Tax time written on wooden blocks next to a calculator and Australian dollar notes.
Tax

Tax time: Use this hack to keep the Australian Tax Office off your back

Buying dividend shares can save you paying taxes...

Read more »

Man smiling at a laptop because of a rising share price.
Dividend Investing

2 exciting high-yield ASX dividend shares I'd buy in June

These stocks have a lot to offer investors focused on income.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Dividend Investing

Looking for passive income amid falling interest rates? Check out this top ASX All Ords dividend stock

This high-yielding ASX dividend stock can help boost your passive income amid falling interest rates.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Dividend Investing

Down 34% since 2021, does this ASX dividend share still offer investors a 10% yield today?

There are a few warning signs over this stock.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

Down 26%, Bell Potter says this ASX 200 dividend share is a buy

Major upside and big dividend yields are forecast from this stock.

Read more »

Two businessmen look out at the city from the top of a tall building.
Dividend Investing

With an 8% dividend yield, is this ASX dividend share a buy?

This business offers investors significant potential passive income.

Read more »