Buy Rio Tinto and these ASX dividend stocks

Are you on the lookout for some ASX dividend stocks to buy? If you are, it could be worth taking a look at the three listed below.

They have all been named as buys and tipped to offer attractive dividend yields. Here’s what you need to know:

Coles Group Ltd (ASX: COL)

The first ASX dividend stock for investors to consider buying is supermarket giant Coles.

Citi remains bullish on the company right now. And while it expects a relatively flat year in FY 2024, it is forecasting solid earnings growth in FY 2025 and FY 2026.

The broker is expecting 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 currently has a buy rating and $17.50 price target on its shares.

Rio Tinto Ltd (ASX: RIO)

If you’re not averse to investing in the resources sector, then Goldman Sachs thinks that Rio Tinto’s shares are a buy right now.

The broker believes the mining giant is an ASX dividend stock to buy because of its “compelling relative valuation vs. peers.” It also highlights its “attractive FCF and Div yield.”

In respect to the latter, Goldman is forecasting fully franked dividends per share of US$4.61 (A$7.00) in FY 2024 and then US$4.62 (A$7.02) in FY 2025. Based on the latest Rio Tinto share price of $132.63, this will mean yields of approximately 5.3% in both years.

The broker has a buy rating and $141.80 price target on the miner’s shares.

Rural Funds Group (ASX: RFF)

Bell Potter thinks that Rural Funds could be an ASX dividend stock to buy.

Its analysts recently noted that the agricultural property company’s “share price has continued to remain subdued and trading at its largest discount to market NAV since listing.”

In addition, the broker is forecasting some attractive dividend yields for investors. 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 $2.04, this will mean yields of 5.7% for investors.

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

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

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More reading

• At 20x earnings and a 4% yield, surely I can’t ignore this ASX 200 stock?
• Rio Tinto share price marching higher amid record Aussie solar power agreement
• Boost your second income with these buy-rated ASX dividend stocks
• How I’d build a backup superannuation fund with $10,000 and 5 ASX shares
• ASX 200 mining stocks underperforming as Andrew Forrest shutters WA nickel mines

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 positions in and has recommended Goldman Sachs Group. 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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