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Date : 18/12/2023

Comprehensive Guide to Top ASX Dividend Stocks

Dividend stocks promise investors both regular income and the possibility that they may grow their investment capital. The ASX has several companies renowned for regular and consistent payment of dividends and have prospective growth ability. In this comprehensive guide, we will explore three exemplary ASX-listed entities: QBE Insurance Group Limited (ASX: QBE), National Australia Bank Limited (ASX: NAB), and Wesfarmers Limited (ASX: WES). Apart from being dividend-yielding stocks, these companies can be considered resilient against market shocks, a critical aspect attracting income-oriented investors.

QBE Insurance Group Ltd (ASX: QBE)

QBE Insurance Group Ltd (ASX: QBE), a leading name in the insurance sector, has been highlighted by Morgans, a well-regarded brokerage firm, as a top dividend-paying stock in the ASX 200. The company’s growth trajectory is underpinned by substantial rate increases and strategic cost reductions, positioning it for a strong performance in the foreseeable future.

Currently, QBE trades at an attractive valuation of 8 times its projected FY24 earnings. Morgans forecasts a dividend per share of 96 cents in FY 2023, followed by a higher dividend of 137 cents in FY 2024. With QBE’s share price standing at $14.46, these dividends equate to yields of 6.6% and 9.5%, respectively. This generous yield, combined with a robust balance sheet, makes QBE a standout stock for dividend investors. Morgans supports this outlook with an ‘add’ rating and a target price of $17.46 on QBE’s shares.

QBE Insurance Group Stock Dividend

National Australia Bank Ltd (ASX: NAB)

Goldman Sachs, another influential financial player, has identified National Australia Bank Ltd (ASX: NAB) as a potential powerhouse among ASX dividend stocks. NAB’s advantage lies in its robust commercial lending sector, which is expected to outshine its housing loan segment in the next year. This strategic focus is poised to solidify the bank’s dividend payouts.

Looking ahead, Goldman Sachs predicts fully franked dividends of $1.62 per share for both FY 2024 and FY 2025. At the current NAB share price of $29.75, investors can expect dividend yields of 5.3% in both years. NAB’s proactive approach to growth and sound financial health render it an attractive prospect for dividend-focused investors. Reinforcing this sentiment, Goldman Sachs maintains a ‘buy’ rating on NAB, with a price target of $30.52.

National Australia Bank Stock Analysis

Wesfarmers Ltd (ASX: WES)

Lastly, Morgans casts a spotlight on Wesfarmers Ltd (ASX: WES), a titan in the retail industry, endorsing it as a high-quality ASX 200 dividend stock. Wesfarmers’ impressive retail portfolio, which includes household names like Kmart and Bunnings, plays a crucial role in its appeal. The company’s emphasis on value, coupled with its experienced management team, positions it for continued growth and market share gains, even in a challenging economic climate.

Wesfarmers is projected to offer fully franked dividends of $1.91 per share in FY 2024 and $2.18 per share in FY 2025. At its current share price of $54.33, these dividends imply yields of 3.5% and 4%, respectively, making it an attractive option for income-seeking investors. With a robust balance sheet and a strategic growth plan, Wesfarmers is well-placed for sustained success. Morgans echo this optimism with an ‘add’ rating and a target price of $55.15 on Wesfarmers’ shares.

Wesfarmers Limited Stock Analysis

 

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