If you're searching for some ASX dividend stocks to purchase, it might be worthwhile to consider the two mentioned in this piece.
They have dropped more than 20% compared to this time last year and are now at levels that provide substantial opportunities. dividend yields And significant upward potential as per analysts. Below are their recommendations:
Elders Ltd ( ASX: ELD )
The top ASX dividend share that analysts recommend purchasing is Elders.
It is a leading supplier of fertiliser, agricultural chemicals, and animal health products to rural and regional Australia, with strong agency positions in livestock, wool, and real estate.
Bell Potter remains optimistic about the company because they believe that trading conditions have notably strengthened compared to this period last year, positioning the firm well for a robust performance in FY 2025. They stated:
We anticipate that most of the problems which affected 1Q24 should have resolved themselves by 1Q25, leading us to believe that earnings will follow a typical pattern throughout FY25e. Our opinion remains unchanged regarding the minimal impact from the Delta-Elders overlap; we also highlight that the ACCC’s final Supermarkets review needs updating soon. This could act as a trigger for renewed positive momentum.
As for income, the broker is forecasting a partially franked 36 cents per share dividend in FY 2025 and then a fully franked 43 cents per share dividend in FY 2026. Based on its current share price of $6.91, this equates to dividend yields of 5.2% and 6.2%, respectively.
Bell Potter also envisions significant potential for growth in Elders' stock, maintaining their buy recommendation along with a target price of $9.40.
Endeavour Group Ltd ( ASX: EDV )
Another ASX stock recommended for dividends by analysts is Endeavour. This prominent player in the liquor industry boasts an extensive portfolio of pubs nationwide and holds a strong presence in retail through its well-known Dan Murphy’s and BWS labels.
Goldman Sachs believes that the firm represents an excellent choice following recent declines, particularly when its valuation is compared with other companies within the consumer staples sector. They commented as follows:
In summary, we maintain our buy recommendation based on our ongoing confidence in this premium retailer capturing market share during an industry downturn. The company stands out as a robust growth alternative within the hotel sector. Currently, the firm trades at a forward price-to-earnings ratio of 16.4 for fiscal year 2025, compared to its historical average of 22 times earnings and relative multiples like WoW at 22x and COL at 21x.
In addition, the broker is forecasting some attractive dividend yields from its shares. It has pencilled in fully franked dividends per share of 19 cents in FY 2025 and then 22 cents in FY 2026. Based on its current share price of $4.10, this equates to yields of 4.6% and 5.35%, respectively.
Goldman maintains a buy recommendation with a price objective of $5.10 for Endeavour's stock. This suggests an estimated increase of 24% could be achievable within the coming year.
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Down 20%!
Analysts recommend these ASX dividend stocks as prime purchases.
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More reading
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Motley Fool contributor James Mickleboro The Motley Fool Australia holds stakes in Endeavour Group. Additionally, the parent company of The Motley Fool Australia, Motley Fool Holdings Inc., owns shares in and recommends stocks from Goldman Sachs Group. Similarly, The Motley Fool Australia also possesses interests in Coles Group and endorses owning stock in Elders. disclosure policy This article includes solely general investment guidance (covered under AFSL 400691). Authorized by Scott Phillips.
