Brokers Favor These ASX Dividend Stocks for Income Investors

Income investors navigating the Australian share market are presented with a myriad of enticing options, particularly in the realm of quality dividend stocks. Amid this wealth of opportunities, two stocks have recently garnered favorable ratings from brokers, offering investors promising potential yields. Let's delve into the details of these top picks and explore why they could be worth considering for your portfolio this week.
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National Australia Bank Ltd (ASX: NAB)

One standout ASX dividend stock earning a buy recommendation is the renowned National Australia Bank (NAB). Analysts at Goldman Sachs express optimism about ASX NAB's robust positioning in the current economic climate, attributing its strength to a thriving commercial lending business. Projections indicate a promising trajectory, with anticipated volume momentum favoring commercial over housing volumes in the next 12 months.

Goldman Sachs foresees fully franked dividends of $1.62 per share in both FY 2024 and FY 2025, underpinning impressive yields of 5.3%. At the current NAB share price of $29.75, this outlook positions NAB as an appealing investment opportunity. The brokerage firm maintains a buy rating and sets a target price of $30.52 on NAB shares.

Premier Investments Limited (ASX: PMV)

Another noteworthy ASX dividend stock in the spotlight is Premier Investments, a retail conglomerate with a portfolio encompassing popular brands like Just Jeans, Peter Alexander, and Smiggle. Analysts at Morgan Stanley are bullish on the company's recent performance, retaining an overweight rating and setting a target price of $32.00.


Looking ahead, income-focused investors can anticipate fully franked dividends per share of $1.00 in FY 2024 and $1.06 in FY 2025. With the latest Premier Investments share price standing at $26.41, this translates to attractive yields of 3.8% and 4% for investors, respectively.

Navigating Investment Opportunities

As investors explore opportunities in the dynamic landscape of the Australian share market, these two dividend stocks present compelling cases. Beyond immediate yields, the strategic positioning of National Australia Bank and the diverse retail portfolio of Premier Investments offer potential for sustained growth. While broker recommendations provide valuable insights, investors are encouraged to conduct thorough research, considering individual financial goals and risk tolerance, before making investment decisions.


Invest with confidence, keeping an eye on the evolving narratives of these dividend stocks that promise both income and growth potential.

Location: Australia

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