I’m a fan of finding undervalued ASX dividend shares that have been sold down and offer a potentially large dividend yield. I’m going to talk about three S&P/ASX 300 Index (ASX: XKO) shares that are materially down from their highs.

One of the benefits of a lower share price is that when a share price falls, it boosts the dividend yield of the future dividend payments. For example, if a business with a 6% dividend yield falls 10%, the yield would become 6.6%.

With that in mind, below are three beaten-up names I’m looking at.

APA Group (ASX: APA)

APA is the owner and operator of a large gas pipeline in Australia – it carries half of the nation’s natural gas usage. The business also owns or has stakes in a number of other energy assets including renewable energy generation, electricity transmission, gas storage, gas processing and gas-powered energy generation.

The APA share price is down around 30% from August 2022, despite the business continuing to grow its distribution and having most of its organic revenue (growth) linked to inflation.

It has grown its annual distribution each year since 2004. The ASX 300 share is expecting to pay a distribution per security of 56 cents in the current financial year, which translates into a FY24 yield of 6.7%.

Metcash Ltd (ASX: MTS)

Metcash supplies a number of independent food and liquor retailers including IGA, Cellarbrations, The Bottle-O, IGA Liquor, Porters Liquor, Thirsty Camel, Big Bargain Bottleshop and Duncans.

The most attractive part of the business, in my eyes, is the hardware division, which includes Mitre 10, Home Hardware and Total Tools. It also recently announced the planned acquisition of Bianco Construction Supplies (a SA and NT business) and Alpine Trust (a large frame and truss operator).

In my opinion, the ASX 300 share has a compelling future in hardware, with Australia’s ongoing population growth and the likely ongoing need for construction for the years ahead.

I like the company’s plans to move into foodservice distribution, with the acquisition of Superior Food. It’s a large market, with potential for Metcash to grow its market share. This is a logical expansion of its existing food business.  

The company has a dividend payout ratio of 70% of underlying net profit after tax (NPAT). The projection on Commsec suggests a grossed-up dividend yield of 7.4%.

Adairs Ltd (ASX: ADH)

Adairs is an ASX 300 share that operates through three different businesses – Adairs, Mocka and Focus on Furniture.

Sales and foot traffic are down amid the high cost of living, which is also hurting profitability. The company is looking to upsize its Adairs stores and roll out additional stores to boost its network’s earning power. It has recently taken over operation of its new national distribution centre, which will hopefully lead to lower costs and better efficiencies.

However, I don’t think the weak retail conditions will last forever, particularly if interest rates start coming down. The Adairs share price is down around 50% from mid-2021, which makes the future dividend payments compelling.

According to Commsec, the grossed-up dividend yield for FY25 could be around 8% and in FY26 it could be 11%.

The post Dividend yields up to 8%! Which of these cheap ASX 300 shares should I buy? appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 shares just upgraded by Macquarie
• Top ASX shares to buy instead of a term deposit in March 2024
• Where I’d invest $30,000 in ASX shares for passive income
• 1 ASX dividend stock down 30% to buy right now
• Here’s how the ASX 200 market sectors stacked up last week

Motley Fool contributor Tristan Harrison has positions in Metcash. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs. The Motley Fool Australia has positions in and has recommended Adairs and Apa Group. The Motley Fool Australia has recommended Metcash. 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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It certainly is a good time to have Wesfarmers Ltd (ASX: WES) shares in your portfolio.

The conglomerate’s shares are up an impressive 36% over the last 12 months.

This means that if you had invested $20,000 into the Bunnings owner’s shares a year ago, your investment would be worth over $27,000 today.

But it gets better. Today is payday for eligible Wesfarmers shareholders, with its latest dividend being dished out on Wednesday.

It’s a good day to own Wesfarmers shares

Last month, Wesfarmers released its half-year results and impressed the market with a stronger than expected performance.

For the six months, the company reported a 0.5% increase in revenue to $22,673 million. This was driven largely by a 1.7% increase in Bunnings revenue and a 7.8% jump in Kmart Group revenue.

Things were better for its net profit after tax, which grew at a quicker rate of 3% to $1,425 million. This was the result of a very strong performance by the Kmart Group business, which posted a 26.5% increase in earnings for the six months. Management highlights that this reflects the positive customer response to Kmart’s lowest price positioning.

In light of this positive form, the Wesfarmers board elected to increase its fully franked interim dividend by 3.4% to 91 cents per share.

It is this dividend that is being paid out to eligible shareholders today.

Going back to our original example. If you’d bought $20,000 worth of Wesfarmers shares a year ago, you would own 400 units today.

This means that you would be receiving a very welcome pay check of $364 today.

Where next for its shares?

Unfortunately, all the major brokers believe that Wesfarmers shares have now pushed beyond fair value and are in overvalued territory.

The most bullish out there is Morgans with its hold rating and $62.30 price target. This implies potential downside of 7% from current levels.

The post Why today is a good day to own Wesfarmers shares appeared first on The Motley Fool Australia.

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More reading

• $19 billion in ASX dividends is being paid out this week. Are you getting your share?
• 3 great ASX shares I want to buy in the next bear market
• If I were Warren Buffett, I’d buy these ASX shares in a heartbeat
• How many Wesfarmers shares must I buy to get $100 in monthly passive income?
• If I’d put $5,000 in Wesfarmers shares at the start of 2024, here’s what I’d have now

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 Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. 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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If you have a high tolerance for risk, then having a little exposure to the small side of the market could be a good idea.

That’s because the potential returns on offer from ASX small-cap stocks can be incredible.

For example, Bell Potter has just named $135 million copper miner Aeris Resources Ltd (ASX: AIS) as a small cap to buy and is tipping huge returns over the next 12 months.

An ASX small-cap stock to buy

According to the note, the broker has retained its buy rating and 23 cents price target on Aeris’ shares.

Based on its current share price of 14.5 cents, this suggests that almost 60% upside is possible for investors.

To put that into context, a $10,000 investment would turn into $16,000 if Bell Potter is on the money with its recommendation.

Why is the broker feeling bullish?

Bell Potter highlights that the copper price has started to recover after a period of significant weakness. It believes this recovery could continue, which would be great news for this ASX small-cap stock. The broker said:

Since hitting a low of US$8,065/t in early February 2024, the LME cash copper price has run up to +US$9,000/t, breaking above its recent trading range and making an 11 month high. The price currently sits at ~US$8,750/t, for a gain of 8.5% in the last seven weeks. We remain bullish on the outlook for copper and continue to forecast rising prices based on supply disruptions, a finely balanced market, its direct exposure to the renewable energy/electrification thematic and broad-based demand that is not entirely dependent on China.

Commenting on why the broker thinks Aeris is a great option for investors, its analysts said:

AIS is a copper dominant producer with all its assets in Australia. Its near-term outlook is highly leveraged to the copper price and increasing copper grades and production at the Tritton copper mine. Successful delivery offers significant upside to the share price and a strategically attractive asset in Tritton, making AIS vulnerable as a corporate target.

The post Why this ASX small cap stock could rocket 60% appeared first on The Motley Fool Australia.

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• This dirt cheap ASX mining stock could nearly double in 12 months

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 no position in any of the stocks mentioned. 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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Are you on the lookout for some big returns? If you are, then it could be worth looking closer at the ASX 200 share named below.

That’s because the team at Bell Potter has just initiated coverage on it and believes there’s potential for strong returns over the next 12 months.

Which ASX 200 share is the broker bullish on?

The share in question is engineering company Monadelphous Group Ltd (ASX: MND).

With its shares down 7% in 2024, the broker appears to believe a buying opportunity has been created for investors.

According to the note, the broker has initiated coverage on its shares with a buy rating and $15.40 price target.

Based on its current share price, this implies almost 12% upside for investors.

In addition, the broker is forecasting fully franked dividends of 51 cents per share in FY 2024, 55 cents per share in FY 2025, and then 59 cents per share in FY 2026. This equates to dividend yields of 3.7%, 4%, and 4.3%, respectively.

What did the broker say?

Bell Potter believes that this ASX 200 share has a bright short and medium term outlook. It commented:

MND’s short-and-medium-term outlooks are supported by a growing pipeline of committed developments across the energy, lithium and rare earths sectors, which is expected to drive strong growth by its EC division. Over the same period, M&I’s opportunities are reinforced by the latest wave of resources and energy developments, adding to Australia’s infrastructure base and boosting sector-wide maintenance requirements, elevated demand for turnaround and shutdown services in the energy sector and expanded sustaining capital expenditure programs by iron ore miners. MND is also likely to benefit from a growing renewable energy investment pipeline.

All in all, this could make Monadelphous a top option if you’re looking for exposure to this side of the market.

The post Guess which ASX 200 share offers 12% upside and a 4% dividend yield appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Wednesday
• 34 ASX 200 shares with ex-dividend dates next week

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 no position in any of the stocks mentioned. 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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Setting up our personal finances right can help grow our ASX share portfolios. I’m going to talk about three strategies that can help us ensure we have the right foundations for our money.

The most obvious thing to do with our finances is to spend less than we earn. That surplus of cash flow means investors can start putting savings towards financial goals. But, there are three things that I’d really want to make conscious decisions about.

Have an emergency fund

Having an emergency fund is the idea of putting some money aside in a savings account for…an emergency!

We don’t know when an emergency is going to happen, so it’s good to have that money ready. Different households may have different possible worst-case emergencies. A young adult may want to have enough to replace their car if it’s written off.

A family may want to have an amount big enough to pay for living expenses for three to six months if the main breadwinner loses their income. Three to six months would hopefully be enough time to get a new job.

Other unexpected personal finance expenses could be a broken fridge, travel for an interstate funeral and so on.

Having this money set aside can give us confidence to invest in ASX shares, rather than going for the most defensive ASX shares.

Don’t take on ‘bad’ debt

In my mind, we don’t necessarily need to take on any debt at all, apart from buying a property.

Taking on debt to pay for discretionary items could encourage us to stretch too far with our spending and it ends up costing our personal finances more because of the interest costs. Borrowing money is even more expensive now because of higher interest rates. Our personal finance choices can make a big difference in how much we can invest in ASX shares.

If we’re going to take on debt, I think it’s best used for assets that can go up in value.

Got a goal to pay for something? I’d suggest putting money into a high interest savings account. That way, we can make interest work for us rather than against us. Albert Einstein supposedly once said:

Compound interest is the most powerful force in the universe. Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t pays it.

Invest regularly

I think a regular investment strategy with ASX shares is key for creating good long-term wealth with our personal finances.

Putting more money to work into ASX shares gives us the chance to find more opportunities and put more into compound growth by giving the portfolio more fuel.

Just putting money regularly into ASX-listed exchange-traded funds (ETFs) can create good long-term returns.

There are lots of different options – it can be a good idea to get diversified exposure to the global share market, with a pick like the Vanguard MSCI Index International Shares ETF (ASX: VGS).

The post 3 personal finance tips to help anyone grow richer appeared first on The Motley Fool Australia.

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More reading

• Buy these ASX dividend stocks for an income boost
• 5 things to watch on the ASX 200 on Wednesday
• If you’d put $20,000 in this ASX retail stock at the start of 2023, you’d have $134,000 now
• Qantas or Telstra share price: Which will climb higher in 2024?
• 2 Australian dividend shares to buy under $2

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. 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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Which ASX dividend stocks could be good options for investors looking for an income boost?

Let’s take a look at a couple that have recently been given the seal of approval by analysts. They are as follows:

Centuria Industrial REIT (ASX: CIP)

The first ASX dividend share that could be a buy according to analysts is Centuria Industrial.

It is Australia’s largest domestic pure play industrial property investment company with a portfolio of high-quality industrial assets across the country.

UBS is positive on the company and recently retained its buy rating and $3.71 price target on its shares.

The broker also continues to forecast attractive dividend yields from its shares. It is forecasting the company to pay dividends per share of 16 cents in both FY 2024 and in FY 2025. Based on the current Centuria Industrial share price of $3.54, this represents yields of 4.5% in both years.

Deterra Royalties Ltd (ASX: DRR)

Another ASX dividend stock that analysts are positive on is Deterra Royalties.

It is focused on the management and growth of a portfolio of royalty assets across a range of commodities. This includes royalties held over its cornerstone asset, Mining Area C, in the Pilbara region of Western Australia.

The team at Morgan Stanley is feeling very positive about the company despite an admittedly softer than expected first-half performance. Last month, it put an overweight rating and $5.65 price target on its shares.

As for income, the broker is expecting Deterra Royalties to pay some big dividends in the near term. It is forecasting fully franked dividends per share of 37 cents in FY 2024 and 34 cents in FY 2025. Based on the current Deterra Royalties share price of $4.70, this will mean yields of 7.9% and 7.2%, respectively.

The post Buy these ASX dividend stocks for an income boost appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
• Buy Coles and this ASX 300 dividend share
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• Analysts name 2 ASX income shares to buy with 6%+ dividend yields

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 no position in any of the stocks mentioned. 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.4% to 7,780.2 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to rise slightly on Wednesday following a subdued session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points higher. In late trade on Wall Street, the Dow Jones is flat, the S&P 500 has fall 0.15%, and the Nasdaq is down 0.2%.

Oil prices fall

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough session after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.55% to US$81.49 a barrel and the Brent crude oil price is down 0.8% to US$86.04 a barrel. Traders appear to have been taking profit after recent gains.

Gold price edges higher

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch on Wednesday after the gold price edged higher overnight. According to CNBC, the spot gold price is up slightly to US$2,199.1 an ounce. A weaker US dollar boosted the precious metal ahead of the release of US inflation data.

Monadelphous rated as a buy

The Monadelphous Group Ltd (ASX: MND) share price is great value according to analysts at Bell Potter. This morning, the broker initiated coverage on the engineering company’s shares with a buy rating and $15.40 price target. It said: “MND’s short-and-medium-term outlooks are supported by a growing pipeline of committed developments across the energy, lithium and rare earths sectors, which is expected to drive strong growth by its EC division.”

ASX 200 shares going ex-dividend

A large number of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes property companies Arena REIT (ASX: ARF), Centuria Industrial REIT (ASX: CIP), and Healthco Healthcare and Wellness Reit (ASX: HCW), and plumbing parts company Reece Ltd (ASX: REH).

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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• $19 billion in ASX dividends is being paid out this week. Are you getting your share?
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• Why Beach Energy, Elders, Lake Resources, and Premier Investments are rising today

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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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In the face of 13 interest rate rises in 18 months over 2022 and 2023, many ASX retail stocks struggled with the expectation that their earnings would drop.

However, there is one direct-to-consumer online retailer that’s managed to buck the trend.

Let’s check out the phenomenon that’s Step One Clothing Ltd (ASX: STP).

Everything that could go wrong

Step One sells men’s underwear and rapidly developed a cult following for its bamboo and anti-chafing materials.

Its low-budget television ads also caught the eye of curious consumers and allowed the brand to compete against much larger rivals.

The popularity encouraged the business to float on the ASX in late 2021, in a bull market hungry for initial public offerings (IPOs).

Shares were sold for $1.53 during the IPO, then exploded on the first day of trading, ending up at $2.70.

Unfortunately for all involved, it all came crashing down soon afterwards.

A combination of underwhelming business performance and a market that lost interest in high-growth shares due to rising interest rates meant Step One shares plunged.

By the start of 2023, they were languishing at just 26 cents.

Let’s assume you had the foresight to buy $20,000 worth of Step One shares at this point.

A comeback for the ages

As early as January 2023, the experts at Morgans declared that consumer discretionary shares had been oversold.

The team explicitly named Step One as one of the retail stocks to buy.

To the credit of those analysts, Step One shares have gone ballistic ever since.

Over just 14 months, the stock has risen a crazy 569%.

That $20,000 you invested last year? It’s now worth $133,846.

Amazingly, Morgans is still backing the $320 million market capitalisation to increase even further, currently maintaining the add rating for Step One.

The moral of this story isn’t to speculate all your money into one stock for quick riches.

It’s that buying ASX shares when everyone else has fled is not a bad idea, as long as you have faith that the business is capable of recovering in the long run.

If you keep grabbing stocks that are already popular, you will never do better than average. In fact, statistically you would probably do worse than the market.

Good luck out there.

The post If you’d put $20,000 in this ASX retail stock at the start of 2023, you’d have $134,000 now appeared first on The Motley Fool Australia.

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• Shares vs. property: Why cheaper homes and ASX small-cap shares are rising fastest in 2024
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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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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The Telstra Group Ltd (ASX: TLS) share price closed the session yesterday at $3.76, down 0.13% for the day and down 10.8% over the past year.

The Qantas Airways Limited (ASX: QAN) share price closed at $5.35, down 0.56% for the day and down 17.7% over the past 12 months.

Both stocks are considered ASX blue chips, but which one will rise in value faster over the next year?

We canvas the views of top broker Goldman Sachs, which has a buy rating on both stocks.

Telstra share price to ring in 21% upside, says broker

Goldman Sachs has a 12-month share price target of $4.55 on Telstra.

This implies a potential upside of 21% for investors who buy Telstra shares today.

In a note released this month, the broker says Telstra is its preference among Australia/New Zealand telcos.

However, the ASX telecommunication share is not without downside risks.

Goldman explained:

Key downside risks: (1) higher competition in mobile/fixed from Optus/TPG or from smaller players using the NBN to loss lead, both of which would reduce our earnings & dividend growth; (2) disappointing cost out performance, meaning TLS is unable to offset wage cost inflation; (3) unfavorable regulation in fixed & mobile, including NBN pricing; and (4) delays to infrastructure monetisation or lower than expected realised value.

What do other analysts think?

The consensus among analysts on CommSec is for Telstra to improve its earnings over the next few years.

The consensus on earnings per share (EPS) is 18.1 cents in 2024, 19.5 cents in 2025, and 21.8 cents in 2026.

The analysts expect Telstra to pay dividends of 18 cents per share in 2024, 19 cents in 2025 and 20 cents in 2026.

Based on yesterday’s closing share price, this means Telstra will pay dividend yields of 4.78%, 5.05%, and 5.32%, respectively.

The consensus rating on Telstra shares among the 18 analysts is a moderate buy. Twelve say Telstra is a strong buy and three say a moderate buy. Two say hold and one gives the telco a moderate sell rating.

What about the Qantas share price?

Goldman Sachs has a 12-month share price target of $8.05 on Qantas.

This implies a potential upside of 50.5% for investors who buy Qantas shares today.

In a note last month, the broker said 1H FY24 earnings provided “another proof point on reset earnings capacity”.

The broker said:

… we note that our FY24 EPS remains 52% above pre-COVID levels even as the business faces higher (vs pre COVID) fuel prices, elevated current customer investment and a 10% yoy GSe decline in unit revenue (FY24 RASK is 24% above pre-COVID equates to average 4.4% per annum). Despite this, QAN is trading 17% below its pre-COVID market capitalization with the enterprise value 24% lower.

Goldman said that, like Telstra shares, Qantas also has downside risks.

These include slower-than-expected traffic recovery; a structurally reduced travel demand post-pandemic; irrational domestic market pricing; higher-than-expected fuel prices, and unfavourable exchange rates.

What do other experts think?

The consensus is for Qantas to grow its EPS from 90.2 cents in 2024 to 99 cents in 2025 and $1.01 in 2026.

The analysts expect Qantas to pay no dividend in 2024, 20 cents per share in 2025 and 27 cents in 2026.

Based on yesterday’s closing share price, this means Qantas will pay yields of 3.74% in 2025 and 5.05% in 2026.

The consensus rating on Qantas shares among 16 analysts on CommSec is a strong buy. Eleven say the flying kangaroo is a strong buy, two say a moderate buy, and three say hold.

Qantas or Telstra share price: Which wins?

Qantas, easily.

Goldman Sachs is expecting an uplift of 50.5% in the Qantas share price this year.

By comparison, the broker expects the Telstra share price to rise by 21%.

The post Qantas or Telstra share price: Which will climb higher in 2024? appeared first on The Motley Fool Australia.

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More reading

• $19 billion in ASX dividends is being paid out this week. Are you getting your share?
• Why Telstra and these ASX 300 stocks just hit 52-week lows
• Telstra is paying 18 cents per share in dividends: Time to buy the stock?
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Motley Fool contributor Bronwyn Allen 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 Telstra 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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Investors are spoilt for choice when it comes to Australian dividend shares.

But which ones could offer investors bang for their buck right now? Let’s take a look at two under $2 that could be top options according to analysts. Here’s what you can expect from them:

Accent Group Ltd (ASX: AX1)

The first Australian dividend share for income investors to look at is footwear focused retail Accent.

With over 800 stores, 34 brands, and over 35 online platforms, there’s a good chance that you will have bought shoes or sneakers from Accent in the past.

Among its store brands are Platypus, Sneaker Lab, The Athlete’s Foot, and Hype DC. It also recently moved into clothing with brands including Nude Lucy, Owwy, First Muse, and Glue Store.

Last month, analysts at Bell Potter retained their buy rating on the company’s shares with an improved price target of $2.50.

As for dividends, the broker is forecasting fully franked dividends per share of 13 cents in FY 2024 and 14.6 cents in FY 2025. This equates to dividend yields of 6.5% and 7.3%, respectively.

Centuria Office REIT (ASX: COF)

Another Australian dividend share that has been named as a buy is the Centuria Office REIT.

It offers investors an easy way to invest in commercial property. Centuria Office REIT is Australia’s largest pure play office REIT with a geographically diversified portfolio of high quality assets. The portfolio is predominantly exposed to metropolitan and near city office markets that are well connected to transport and lend themselves to affordable rents.

Morgans thinks it would be a good option for income investors. It currently has an add rating and $1.60 price target on its shares.

In respect to income, the broker is forecasting dividends per share of 12 cents in FY 2024 and then 11.4 cents in FY 2025. This equates to yields of 9.1% and 8.7%, respectively.

The post 2 Australian dividend shares to buy under $2 appeared first on The Motley Fool Australia.

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More reading

• 7 ASX small-cap shares that are cheaper than the ASX 200 in March 2024
• Forget term deposits and buy these ASX dividend shares
• Invest $15,000 in Accent stock and get $5,500 in passive income
• Buy these top ASX dividend shares with 5%+ yields
• Why these excellent ASX dividend shares have been named as buys

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent 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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