Friday, November 8, 2024

Buy these ASX dividend stocks with 5% to 6% yields

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Image source: The Motley Fool

Do you have room for some more ASX dividend stocks in your income portfolio?

If you do, then it could be worth checking out the three stocks in this article.

That’s because analysts think they are in the buy zone and destined to provide investors with some very attractive dividend yields in the near term. Here’s what you can expect from them:

Centuria Industrial REIT (ASX: CIP)

Centuria Industrial could be an ASX dividend stock to buy. It is Australia’s largest domestic pure play industrial property investment company.

At the last count, it had a portfolio of 88 high-quality, fit-for-purpose industrial assets worth a collective $3.8 billion. The company notes that these assets are based in key in-fill locations and close to key infrastructure.

Analysts at UBS are positive on the company and believe that some good yields are coming in the near term. The broker is forecasting dividends per share of 16 cents in both FY 2024 and in FY 2025. Based on the current Centuria Industrial share price of $3.17, this represents dividend yields of 5% for income investors in both years.

UBS has a buy rating and $3.71 price target on its shares.

Eagers Automotive Ltd (ASX: APE)

Another ASX dividend stock that could offer a great yield is Eagers Automotive.

It is the leading automotive retail group in Australia and New Zealand, with a long history stretching back over 110 years.

With its shares down heavily this year due to concerns over excess inventory and soft demand, Bell Potter believes investors should be snapping them up on the cheap.

Especially with the broker forecasting some above-average dividend yields from Eagers Automotive.

It is expecting fully franked dividends of 64.5 cents per share in FY 2024 and then 73 cents per share in FY 2025. Based on its current share price of $10.11, this represents dividend yields of 6.4% and 7.2%, respectively.

Bell Potter also sees significant value in its shares at current levels. The broker has a buy rating and $13.35 price target on its shares.

A final ASX dividend stock for income investors to consider buying is IPH.

It is an international intellectual property (IP) services group with a network of member firms working throughout 10 IP jurisdictions. IPH has clients in more than 25 countries. This includes Fortune Global 500 companies and other multinationals, public sector research organisations, SMEs, and professional services firms.

Goldman sees it as a great option for income investors and is forecasting fully franked dividends of 34 cents per share in FY 2024 and 37 cents per share in FY 2025. Based on the current IPH share price of $6.39, this represents yields of 5.3% and 5.8%, respectively.

Goldman has a buy rating and $8.70 price target on IPH’s shares.

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