Buy Coles and these ASX dividend stocks

ASX dividend stocks can be a great way to generate an income.

But which ones could be buys?

Three dividend stocks that analysts are tipping as buys this month are listed below. Here’s what you need to know about them:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend stock that analysts think could be a buy is baby products retailer Baby Bunting.

Morgans is feeling upbeat about the company’s outlook following a tough period. This led to the broker recently increasing its “NPAT estimates by 17% in FY24 and 7% in FY25 as a result of cost-out initiatives and higher sales assumptions.”

Its analysts are also predicting some generous dividend yields in the near term. They are forecasting fully franked dividends per share of 9.9 cents in FY 2024 and then 12.9 cents in FY 2024. Based on the current Baby Bunting share price of $1.89, this will mean yields of 5.2% and 6.8%, respectively.

Morgans has an add rating and $2.50 price target on its shares.

Coles Group Ltd (ASX: COL)

Another ASX dividend stock that analysts have tipped as a buy is supermarket giant Coles.

Citi is feeling positive about the company partly due to anti-theft measures. As a result of these actions, its analysts “expect the drag from theft on gross margin will begin to materially reverse in 2H24.”

The broker expects this to underpin fully franked dividends of 64 cents per share in FY 2024 and 70 cents per share in FY 2025. Based on the current Coles share price of $15.79, this will mean yields of 4% and 4.4%, respectively.

Citi has a buy rating and $17.50 price target on its shares.

Rural Funds Group (ASX: RFF)

Finally, over at Bell Potter, its analysts continue to believe that agricultural property company Rural Funds could be an ASX dividend stock to buy.

Its analysts highlight that the company’s share price was recently “trading at its largest discount to market NAV since listing.”

In addition, the broker is forecasting some big yields from its shares in the coming years. It is expecting dividends per share of 11.7 cents in FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.08, this will mean yields of 5.6% for investors.

The broker has a buy rating and $2.25 price target on its shares.

The post Buy Coles and these ASX dividend stocks appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group and Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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