Buy and hold these ASX dividend stocks for a decade

If you’re an income investor and have a penchant for buy and hold investing, then it could be worth considering the two ASX dividend stocks listed below.

Here’s why they could be top long term options for investors:

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation could be a great ASX dividend stock to buy and hold. It is the lottery company responsible for the OZ Lotto, Powerball, and Keno brands.

The team at Citi is positive on Lottery Corporation and has a buy rating and $5.60 price target on its shares.

The broker highlights its defensive qualities and strong pricing power. In respect to the latter, the broker suggests that the market “underestimates the uplift to the contribution margin” from recent price rises.

It is also worth noting that since this note, the Powerball product has been on a stunning jackpot run. This could mean stronger than expected earnings and dividends during the second half.

In the meantime, the broker is forecasting dividends per share of 17 cents in FY 2024 and 18 cents in FY 2025. Based on the latest Lottery Corporation share price of $5.06, this will mean fully franked yields 3.3% and 3.5%, respectively.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX dividend stock that could be a great long term pick is Lovisa. It is a leading fast fashion jewellery retailer with over 800 stores across over 30 countries.

But management isn’t settling for that. It has huge global expansion plans, which are being overseen by a highly experienced CEO that has an incredible track record.

Morgans is confident in the company’s plans. It notes that “investment will be needed to expand LOV’s network in the US and Europe and to take it into new markets, but the company has the balance sheet capacity to fund this and the returns could be stellar.”

Morgans has an add rating and $27.50 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 70 cents per share in FY 2024 and 81 cents per share in FY 2025. Based on the current Lovisa share price of $23.02, this implies yields of 3% and 3.5%, respectively.

The post Buy and hold these ASX dividend stocks for a decade appeared first on The Motley Fool Australia.

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More reading

• ASX passive income seekers: Invest $10,000 for $520 in monthly income
• Buying ASX retail shares? You’ll want to see these numbers
• Why I think Lovisa stock is an amazing ASX 200 buy for both dividends and growth
• Here’s how I’m targeting a generous ASX passive income in retirement!
• Here are 10 ASX shares I’d buy in 2024

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lottery and Lovisa. The Motley Fool Australia has recommended Lovisa. 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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