For income investors seeking dividend-paying stocks on the Australian Securities Exchange (ASX), two standout options have caught the attention of brokers. ANZ Group Holdings Ltd (ASX: ANZ) and Dexus Convenience Retail REIT (ASX: DXC) offer compelling dividend yields and growth prospects. Let's delve into the details of these ASX dividend shares recommended by brokers.
ANZ Group Holdings Ltd (ASX: ANZ):
ANZ, a leading banking giant, is favored by Ord Minnett despite its recent strong performance. The proposed acquisition of Suncorp Bank is a key catalyst for the positive sentiment surrounding ANZ. Ord Minnett believes this acquisition will enhance ANZ's scale and competitive position in areas where it currently lags behind other major banks. With an accumulate rating and a $31.00 price target, Ord Minnett forecasts fully franked dividends per share of $1.62 in FY 2024 and $1.65 in FY 2025. At the current share price of $29.26, this translates to dividend yields of 5.5% and 5.6%, respectively.
Dexus Convenience Retail REIT (ASX: DXC):
Dexus Convenience Retail REIT, specializing in convenience retail and service station properties, is identified as an attractive option by Bell Potter. Despite trading at a 34% discount to stated net tangible assets (NTA), Bell Potter views the discount as overly punitive. The REIT's focus on a sub-sector with clear price discovery and investor preference for smaller assets is seen as a positive. With a buy rating and a $3.00 price target, Bell Potter forecasts dividends per share of 20.9 cents in FY 2024 and 20.7 cents in FY 2025. At the current share price of $2.73, this results in dividend yields of 7.7% and 7.6%, respectively.
Conclusion:
For income investors seeking attractive dividend yields and growth potential, ANZ Group Holdings Ltd and Dexus Convenience Retail REIT present compelling opportunities. With positive outlooks from reputable brokers and solid dividend forecasts, these ASX dividend shares offer the potential for consistent income generation. However, investors should conduct thorough research and consider their investment objectives before making any decisions.
