Enhancing Your Income Portfolio: Top ASX Dividend Stocks Recommended by Brokers

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Are you eager to bolster your income portfolio with some fresh ASX dividend stocks this month? If you are, you'll want to pay attention to the two prime candidates listed below that have garnered significant attention for their projected attractive yields.

Here's a comprehensive look at these broker-recommended ASX dividend stocks:

Suncorp Group Ltd (ASX: SUN)

The first ASX dividend stock earning the "buy" label is Suncorp.

Goldman Sachs holds a positive view of this prominent insurance and banking company, citing "tailwinds present in the general insurance market" and the strong rate momentum that SUN is currently enjoying. Furthermore, the brokerage firm underscores the potential for capital returns if the company opts to divest its banking operations. Goldman Sachs commented:

"In addition to our thesis, we also see potential catalysts on the horizon for SUN, including capital returns following the sale of the bank and the possibility of a whole-account quota share arrangement similar to IAG."

In terms of income, the analysts at Goldman Sachs anticipate fully franked dividends per share of 76 cents in FY 2024, followed by 81 cents in FY 2025. Based on the current Suncorp share price of $13.56, this translates to impressive yields of 5.6% and 6%, respectively. Goldman Sachs maintains a "buy" rating and a $15.13 price target for Suncorp's shares.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend stock drawing a "buy" recommendation is Universal Store, a youth fashion retailer.

The Morgans team is of the opinion that UNI shares are currently undervalued, considering the company's promising growth prospects over the medium term. Morgans stated:

"The appealing assortment of medium-term growth opportunities at UNI is undervalued with a single-digit FY25 P/E."

The brokerage firm foresees this undervaluation paving the way for the company to distribute fully franked dividends amounting to 26 cents in FY 2024, followed by 29 cents in FY 2025. In line with the latest Universal Store share price of $3.33, these projections translate to substantial yields of 7.8% and 8.7%, respectively.

Morgans also envisions significant upside for Universal Store's shares, endorsing an "add" rating along with a $4.25 price target.

Conclusion

Investors seeking income opportunities in their portfolios may want to consider these top-notch ASX dividend stocks endorsed by reputable brokers. However, as with any investment, conducting thorough research, staying informed about market conditions, and consulting with financial experts are prudent steps before making investment decisions. These broker-recommended ASX dividend stocks could potentially offer an enticing avenue for investors seeking reliable income sources with the potential for strong returns.


Location: Australia

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