Are you seeking new additions to your income portfolio this June? Look no further. Below are three ASX dividend stocks that brokers have recently recommended as buys, each offering attractive dividend yields. Here’s what you can expect from these stocks in the coming years:
GDI Property Group Ltd (ASX: GDI)
Analysts at Bell Potter have highlighted GDI Property Group as a strong buy, citing its potential to deliver substantial dividends in the coming years. This property company is poised to offer consistent returns, making it an excellent choice for income investors.
Bell Potter forecasts dividends per share of 5 cents for FY 2024, FY 2025, and FY 2026. With the current GDI Property share price at 61 cents, this implies a dividend yield of 8.2% for the next three years. This consistent dividend payout positions GDI Property as a reliable source of income for investors.
Bell Potter has assigned a buy rating to GDI Property, with a price target of 75 cents per share. This target indicates a significant upside potential from the current share price, making it a compelling investment opportunity.
Rural Funds Group (ASX: RFF)
Another ASX dividend stock favored by Bell Potter is Rural Funds Group. Unlike GDI Property, Rural Funds specializes in agricultural assets, offering diversification within the property sector.
Rural Funds owns a portfolio of high-quality agricultural assets, including orchards, vineyards, water entitlements, cropping, and cattle farms. This diversification across various agricultural sectors provides stability and growth potential.
Bell Potter forecasts dividends per share of 11.7 cents for both FY 2024 and FY 2025. With the current share price at $2.00, this translates to a yield of 5.85% for investors. This attractive yield makes Rural Funds a noteworthy option for those seeking income from their investments.
Bell Potter has a buy rating on Rural Funds, with a price target of $2.40 per share. This price target suggests a notable upside from the current share price, reinforcing the stock's potential as a valuable addition to an income-focused portfolio.
Telstra Group Ltd (ASX: TLS)
Telstra, Australia’s leading telecommunications company, is another ASX dividend stock that analysts have tipped as a buy. The team at Goldman Sachs remains positive on Telstra, highlighting its low-risk earnings and dividend growth.
Goldman Sachs recently reiterated its positive outlook on Telstra, emphasizing the company’s ability to deliver low-risk earnings and dividend growth from FY22 to FY25, underpinned by its mobile business. This stability makes Telstra a reliable choice for income investors.
Goldman Sachs forecasts fully franked dividends of 18 cents per share for FY 2024 and 18.5 cents per share for FY 2025. With the current Telstra share price at $3.55, this equates to fully franked yields of 5.1% and 5.2%, respectively. These yields offer a solid return for investors seeking steady income.
Goldman Sachs has a buy rating on Telstra, with a price target of $4.25 per share. This target indicates significant potential for capital appreciation, in addition to the attractive dividend yield.
Why These Stocks Are Ideal for Income Investors
All three stocks – GDI Property Group, Rural Funds Group, and Telstra – offer consistent and attractive dividend payouts, making them reliable choices for income investors. Their forecasted yields exceed those of many other ASX stocks, providing a steady income stream.
The buy ratings and price targets set by reputable analysts like Bell Potter and Goldman Sachs underscore the potential of these stocks. Their positive outlooks are based on thorough analyses, lending credibility to the investment potential of these companies.
Investing in these stocks also provides sector diversification. GDI Property Group and Rural Funds Group offer exposure to the property and agricultural sectors, while Telstra provides access to the telecommunications sector. This diversification can help mitigate risk and enhance portfolio stability.
In addition to dividend income, these stocks also present opportunities for capital appreciation. The price targets set by analysts indicate significant upside potential, making them attractive for long-term investors seeking both income and growth.
For income investors, GDI Property Group, Rural Funds Group, and Telstra represent compelling investment opportunities. Their consistent dividend payouts, strong analyst support, sector diversification, and potential for capital appreciation make them ideal additions to an income-focused portfolio. As you evaluate your investment options this June, consider these ASX dividend stocks for their potential to deliver steady and attractive returns.
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