Analysts say these ASX dividend stocks are top buys

Are you an income investor on the hunt for new ASX dividends stocks to buy?

If you are, then you may want to check out the two listed below that analysts are tipping as buys. Here’s what they are saying about them:

Cedar Woods Properties Limited (ASX: CWP)

A recent note out of Morgans reveals that its analysts are feeling positive about this property company and see it as an ASX dividend stock to buy.

In fact, the broker has put Cedar Woods’ shares on its best ideas list with an add rating and $5.60 price target.

Morgans thinks that the company’s shares are undervalued and deserve to trade on higher multiples. The broker explains:

CWP is a volume business and the demand for lots looks to be improving, with margins to invariably follow. CWP’s exposure to lower priced stock in higher growth markets sees further potential to drive earnings. On this basis, we see every reason for CWP to trade at NTA and potentially at a premium, were the housing cycle to gain steam through FY25/26.

In respect to dividends, Morgans is forecasting dividends per share of 18 cents in FY 2024 and then 20 cents in FY 2025. Based on the current Cedar Woods Properties share price of $4.80, this will mean dividend yields of 3.75% and 4.2%, respectively.

Suncorp Group Ltd (ASX: SUN)

Analysts at Goldman Sachs are tipping insurance giant Suncorp as an ASX dividend stock to buy right now.

The broker currently has a buy rating and $18.00 price target on the insurance giant’s shares.

Goldman is feeling positive about the company due to tailwinds in the general insurance market and potential capital returns. It said:

We are favourably disposed to Suncorp, noting in large part the tailwinds that exist in the general insurance market – i.e., very strong renewal premium rate increases and the benefit of higher investment yields. We think the strong rate momentum that SUN is getting should offset any volume pressures. SUN’s underlying margins are also expected to stay within 10-12% despite higher reinsurance costs, increased perils allowances and lower reserve release assumptions as SUN benefits from significant price increases. Further, we note that we could start to see more meaningful benefits to margin from underlying claims inflation abating. Separate to our thesis, we also see possible catalysts on the horizon for SUN including capital return post the bank sale, if completed.

As for income, Goldman expects this to support the payment of fully franked dividends per share of 79 cents in FY 2024 and then 85 cents in FY 2025. Based on the Suncorp share price of $17.03, this will mean yields of 4.6% and 5%, respectively.

The post Analysts say these ASX dividend stocks are top buys appeared first on The Motley Fool Australia.

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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 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.