There are a multitude of ASX dividend shares available for investors, but which ones are currently in the buy zone? According to recent analyses, three shares have emerged as top picks for income investors. Here’s a detailed look at these shares, what analysts are saying about them, and the dividend yields they are forecasting in the near term.
Endeavour Group Ltd (ASX: EDV)
Endeavour Group Ltd stands out as a compelling choice among ASX dividend shares, according to analysts at Goldman Sachs. Specializing in alcohol retail with brands like BWS and Dan Murphy's, Endeavour enjoys a dominant market position. Analysts highlight the defensive nature of the alcohol retail market, which adds to its appeal as an income investment. Goldman Sachs forecasts fully franked dividends of approximately 22 cents per share for both FY 2024 and FY 2025. With Endeavour's current share price at $5.08, this translates to dividend yields of 4.3% annually. The brokerage firm also sees significant upside potential, assigning a buy rating and setting a price target of $6.20 for Endeavour shares.
Inghams Group Ltd (ASX: ING)
Inghams Group Ltd emerges as another top pick for income investors, recommended by analysts at Morgans. As Australia's leading poultry producer and supplier, Inghams benefits from a strong market position and favorable consumer trends. Morgans considers Inghams' shares to be undervalued at current levels, anticipating fully franked dividends of 22 cents per share in FY 2024 and 23 cents per share in FY 2025. With the current Inghams share price at $3.55, this translates to attractive dividend yields of 6.2% and 6.5%, respectively. The brokerage firm maintains an add rating on Inghams' shares and has set a price target of $4.40, reflecting optimism about future growth prospects.
Suncorp Group Ltd (ASX: SUN)
Suncorp Group Ltd, a major player in the Australian insurance sector, is highlighted by analysts at Goldman Sachs as a top ASX dividend share. Positioned well to benefit from favorable conditions in the general insurance market, Suncorp is expected to deliver fully franked dividends of 78 cents per share in FY 2024 and 83 cents per share in FY 2025. Based on the current Suncorp share price of $16.51, this equates to dividend yields of 4.7% and 5%, respectively. Goldman Sachs maintains a buy rating on Suncorp shares and has set a price target of $17.54, reflecting confidence in the company's ability to generate shareholder value.
For income-focused investors evaluating ASX dividend shares, Endeavour Group, Inghams Group, and Suncorp Group present compelling opportunities. Each company boasts strong market positions within their respective industries, promising dividend yields, and favorable growth prospects as indicated by their share price targets. Endeavour Group leads in alcohol retail with a forecasted dividend yield of 4.3% annually and a price target of $6.20 from Goldman Sachs. Inghams Group, Australia's leading poultry producer, offers dividend yields of 6.2% for FY 2024 and 6.5% for FY 2025, with a price target of $4.40 set by Morgans. Suncorp Group, a prominent insurer, forecasts dividend yields of 4.7% and 5% for FY 2024 and FY 2025, respectively, and has a price target of $17.54 from Goldman Sachs.
Investors seeking stable income streams and potential capital appreciation may find these shares attractive additions to their portfolios. As always, prudent investment decisions should be made based on thorough research and consideration of individual financial goals.
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