These ASX dividend stocks offer 20%+ total returns

There are a lot of ASX dividend stocks to choose from on the Australian share market.

But which ones could be buys for income investors this month?

Two that analysts have named as buys and tipped to pay attractive dividend yields are listed below. Here’s why they are feeling bullish on them:

GDI Property Group Ltd (ASX: GDI)

Bell Potter thinks that GDI Property is an ASX dividend stock to buy.

It is a property owner and fund manager, currently managing property investments in Greater Sydney, Brisbane, Perth, South East Queensland, and North Queensland.

Bell Potter is positive on the company’s outlook and is forecasting double-digit earnings growth over the next three years. It commented:

Despite its sector low valuation metrics, GDI offers a +10% 3yr EPS CAGR which is amongst the highest amongst our coverage while many other passive REITs are still facing CoD headwinds and declining earnings growth. With 17.5% portfolio vacancy the P&L rental risk is already on foot with limited near-term expiries which suggests en masse that there could be more earnings upside than downside risk.

It is expecting this earnings growth to underpin the payments of dividends per share of 5 cents in both FY 2024 and FY 2025. Based on the current GDI Property share price of 65.5 cents, this implies yields of 7.6% in both years.

The broker has a buy rating and 75 cents price target on its shares.

Transurban Group (ASX: TCL)

Over at Citi, its analysts think that Transurban could be an ASX dividend stock to buy this month. It is the owner of toll roads such as CityLink and Cross City Tunnel.

The broker believes that Transurban could be having a better than expected year in FY 2024. It commented:

We believe TCL’s FY24 DPS guidance of 62c is conservative and we forecast DPS of 63.4c given strong toll price growth, traffic growth on new road completions and a slower increase in debt costs in FY24 given a small proportion (c. 3%) of the debt book is maturing this year TCL is currently trading in-line with historic EV/EBITDA multiples at 22.5x, but we see upside given the strong EBITDA growth outlook (c.12% CAGR between Fy24-FY26). Retain Buy

Citi has pencilled dividends per share of 63 cents in FY 2024 and then 65 cents in FY 2025. Based on the current Transurban share price of $13.35, this will mean yields of 4.7% and 4.9%, respectively.

The broker currently has a buy rating and $15.90 price target on Transurban’s shares.

The post These ASX dividend stocks offer 20%+ total returns 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 positions in and has recommended Transurban Group. The Motley Fool Australia has no position in any of the stocks mentioned. 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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