Buy Rio Tinto and this ASX dividend stock

Income investors looking for dividend options might want to read on.

That’s because listed below are two ASX dividend stocks that analysts are recommending as buys.

Here’s what you need to know about them:

Rio Tinto Ltd (ASX: RIO)

If you’re not averse to investing in the mining sector, then Rio Tinto could be worth a look.

It is one of the world’s largest miners with world class operations across multiples commodities. This includes copper, iron ore, and even lithium.

Goldman Sachs thinks that Rio Tinto could be an ASX dividend stock to buy right now.

The broker highlights that “Rio is a FCF and production growth story in our view, with forecast Cu Eq production growth of ~5-6% in 2024 & 2025.”

It expects this to underpin fully franked dividends per share of US$4.61 (A$7.07) in FY 2024 and then US$4.62 (A$7.09) in FY 2025. Based on the latest Rio Tinto share price of $129.02, this will mean yields of 5.5% in both years.

Goldman has a buy rating and $140.50 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend stock that could be a buy according to analysts is youth fashion retailer Universal Store.

It is the owner of the eponymous Universal Store brand, as well as the Thrills and Worship brands.

Combined, Morgans believes the company has an “attractive array of medium-term growth prospects.”

It also believes Universal Store will be well-positioned to pay some very attractive dividends in the near term. It is forecasting forecasting fully franked dividends per share of 26 cents in FY 2024 and 29 cents in FY 2025. Based on the current Universal Store share price of $4.21, this will mean yields of 6.2% and 6.9%, respectively.

Morgans has an add rating and $4.55 price target on its shares.

The post Buy Rio Tinto and this ASX dividend stock appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Universal Store. 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 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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