Sunday, December 22, 2024

Telstra and these ASX 200 income stocks could be top buys this month

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If you are hunting for some ASX 200 income stocks to buy in June, then read on.

That’s because listed below are three that analysts think could be in the buy zone right now.

Another positive is that they have also been tipped to provide great dividend yields. Here’s what you can expect from them:

Charter Hall Retail REIT (ASX: CQR)

The Charter Hall Retail REIT could be a great option for investors that are looking for an ASX 200 income stock to buy this month.

It is a property company that invests predominantly in supermarket anchored neighbourhood and sub-regional shopping centre markets.

Analysts at Citi are feeling positive about the company and its prospects. Particularly given its inflation-linked rental increases. The broker expects this to underpin dividends of 28 cents per share in both FY 2024 and FY 2025. Based on the current Charter Hall Retail REIT share price of $3.35, this will mean huge yields of 8.4%.

Citi currently has a buy rating and $4.00 price target on its shares. This implies potential upside of almost 20%.

Telstra Group Ltd (ASX: TLS)

Another ASX 200 income stock that has been tipped as a buy is Telstra. It is of course Australia’s largest telecommunications company with millions of mobile phone and broadband customers.

Goldman Sachs thinks income investors should be buying its shares at current levels. Particularly given how its analysts “believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive.”

Goldman is expecting fully franked dividends of 18 cents per share in FY 2024 and then 18.5 cents per share in FY 2025. Based on the current Telstra share price of $3.56, this equates to yields of 5% and 5.2%, respectively.

Goldman currently has a buy rating and $4.25 price target on the ASX dividend stock. This suggests that upside of almost 20% is possible over the next 12 months.

Transurban Group (ASX: TCL)

Another ASX 200 income stock that could be a buy this month is Transurban.

It is an urban toll road company with assets in Australia and North America. In Australia, this includes the Cross City Tunnel, the Eastern Distributor, and Westlink M7. Whereas in North America, its roads include 95 Express Lanes and the A25.

The team at Citi is very positive on its outlook and is expecting some good dividend yields in the near term. It is forecasting dividends per share of 63.6 cents in FY 2024 and then 65.1 cents in FY 2025. Based on the current Transurban share price of $12.80, this will mean yields of 5% and 5.1%, respectively.

Citi has a buy rating and $15.50 price target on its shares. This implies potential upside of 21% for investors.

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