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Are you looking for dividend options for your portfolio? If so, check out the two ASX stocks listed below.
Here’s why these ASX dividend stocks were attributed to the purchase:
Baby Bunting Group Ltd (ASX: BBN)
The first share of ASX dividends to be considered is Baby Bunting, a retail company.
Citi is a supporter of the company and recently reaffirmed its buying rating and target price for the company’s stock of $ 6.22. He estimates the company’s shares are trading at 19-fold forward earnings, which he says is cheap given its positive growth forecasts. This is supported by his private label, which, according to a recent poll, has a significant increase in the runway.
Citi commented: “The survey found a number of findings in the baby goods category […] some survey findings suggest a significant runway for growth due to the company’s private label program, relatively small (but growing) demand for used products, improved customer experience and capacity that companies may not need all 110+ stores that it is aimed. “
Citi forecasts fully franked dividends per share of 16 cents in fiscal year 2022 and 19 cents in 2023 fiscal year. Based on Baby Bunting’s current stock price of $ 4.23, this would mean yields of 3.8% and 4.5% respectively.
HomeCo Daily Needs REIT (ASX: HDN)
Another share of ASX dividends is HomeCo Daily Needs REIT. This real estate company, which recently merged with Aventus, is investing in convenient assets in the target subsectors of neighborhood retail, large-scale retail, healthcare and services.
The Goldman Sachs team is very positive about the company and has a buy rating and a target share price of $ 1.70. The broker believes that its shares are cheap at current levels, especially given its positive growth forecasts.
The broker commented: “We believe that HDN is underestimated in its current assessment, given its diversified tenant base, and we believe it may also benefit from switching to retail with retail channels with additional external growth opportunities for medium-term revenue growth.” .
As for dividends, it forecasts dividends per share of 8 cents in fiscal year 2022 and 9 cents in 2023 fiscal year. Based on HomeCo Daily Needs ’current share price of $ 1.32, this would mean dividend yields of 6% and 6.8% respectively.