Buy Qantas and this ASX dividend stock before it's too late

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

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Do you have room in your portfolio for some new ASX dividend stocks? If you do, then it could pay to hear what analysts are saying about the two in this article.

Here's why they could be top options for income investors right now:

Accent Group Ltd (ASX: AX1)

The first ASX dividend stock that could be a buy according to analysts is Accent Group.

It is the footwear retailer behind store brands such as HypeDC, Platypus, The Athlete's Foot, Style Runner, and Sneaker Lab. The company has also diversified into the youth fashion market recently with Glue Store and Nude Lucy.

The team at Bell Potter is very positive on Accent and thinks it would be a great pick for income investors. Especially at current levels. So much so, it has named the company as a key pick. It said:

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.

In respect to income, the broker is forecasting fully franked dividends of 13.7 cents per share in FY 2025 and then 15.6 cents per share in FY 2026. Based on its latest share price of $1.75, this equates to dividend yields of 7.8% and 8.9%, respectively.

Bell Potter has a buy rating and $2.75 price target on Accent's shares.

Qantas Airways Ltd (ASX: QAN)

Another ASX dividend stock that could be a buy is Qantas. It is of course Australia's flag carrier airline, which has undergone an incredible transformation since the COVID pandemic. So much so, it is now in a position to start paying dividends again.

And although the Flying Kangaroo's shares have risen very strongly over the past 12 months, Goldman Sachs still expects plenty of upside and some attractive yields in the near term. It said:

Valuation is still attractive in our view. We believe that QAN's earnings capacity has sustainably improved since COVID, which provides a solid foundation for QAN's next stage of growth. The 1H25 results/ FY25 guide also reflected early upside associated with initial deliveries from QAN's fleet renewal program.

As for dividends, the broker is forecasting payouts of 43 cents per share in FY 2025 and then 33 cents per share in FY 2026 and FY 2027. Based on the current share price of $8.35, this equates to dividend yields of 5.15% and 4%, respectively.

Goldman Sachs has a buy rating and $11.80 price target on the company's shares.

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Motley Fool contributor James Mickleboro has positions in Accent Group. 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 recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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