Fortunately for income investors, there are lots of ASX dividend shares to choose from on the local market.
To narrow things down, let’s take a look at two that Morgans is bullish on right now.
Here’s what the broker is recommending to clients:
CAR Group Limited (ASX: CAR)
This auto listings company has been named as a buy by analysts at Morgans.
It feels that its shares are trading at a level that has created an attractive entry point for investors. The broker said:
CAR’s 1H26 result was strong overall, in our view, and was largely in line with consensus (Visible Alpha) expectations. CAR reported double-digit percentage revenue and EBITDA growth in its key offshore markets (North America, Latam and Korea), whilst Australia revenue growth remained sound (~+8% vs the pcp). We make minor changes to our FY26 assumptions.
CAR is trading on ~22x FY27F PE, which we view as an attractive entry point given its double-digit EPS growth profile. We move to a BUY recommendation with a $35.20 PT.
Morgans expects fully franked dividends of 89.5 cents per share in FY 2026 and then 99 cents per share in FY 2027. Based on the current share price of $25.69, this would mean dividend yields of 3.5% and 3.9%, respectively.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Another ASX dividend share that has been named as a buy is investment management company Pinnacle.
While its half-year results were softer than expected, the broker remains positive and sees lots of value in its shares at current levels. It said:
PNI’s 1H26 NPAT (~A$67m, -11% on the pcp) came in -4% below consensus, but it was more in line excluding one-offs (e.g. mark-to-market investment impacts). Overall, we saw the 1H26 result as compositionally stronger than the headline numbers suggested, and positively accompanied with a move-the-dial acquisition.
We reduce FY26F EPS by -7% on a softer-than-expected 1H26 “reported” result, and dilution from the PAM equity issue. Conversely, FY27F EPS rises +8% on PAM earnings benefits and a broader review of our assumptions. Our price target falls to A$23.21 (from A$26.30). We move to a BUY recommendation (previously Accumulate) with >20% upside existing to our PT.
Morgans is forecasting fully franked dividends of 63 cents per share in FY 2026 and then 80 cents per share in FY 2027. Based on its current share price of $15.10, this would mean dividend yields of 4.2% and 5.3%, respectively.
The post 2 buy-rated ASX dividend shares for income investors in March appeared first on The Motley Fool Australia.
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More reading
- The smartest ASX dividend stocks to buy with $10,000 right now
- 3 shares dumped from the ASX 200 index (and 3 new additions)
- How to invest $10,000 to aim for a 15% dividend yield
- 32 ASX shares about to go ex-dividend
- 2 ASX 200 shares I rate as top buys for growth
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 Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has recommended CAR Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.