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Date : 23/11/2023

Unveiling the Top 3 ASX Dividend Stocks

Looking for good stocks to invest in can be tricky, but ASX dividend stocks are a great choice. They give you regular income and can also increase in value over time. This article will look at three exceptional stocks from the ASX 200 index. These stocks are more than just about making money; they are strong and have a good position in the market, with a bright future ahead. Let’s find out why BHP Group Ltd, Woolworths Limited, and Endeavour Group Ltd are famous among investors and why they might be a brilliant addition to your investment portfolio.

BHP Group Ltd (ASX: BHP)

As a leading entity in the mining sector, BHP Group Ltd (ASX: BHP) stands out as a prime candidate for dividend investors. The company’s favorable position is primarily attributed to the expected global iron ore market deficit, which is projected to keep commodity prices elevated.

This economic backdrop positions BHP to distribute robust dividends to its shareholders. Analysts forecast dividends of US$1.42 per share for the fiscal year 2024 and US$1.21 per share for 2025. When these figures are juxtaposed with BHP’s current share price of $47.40, they equate to attractive yields of 4.55% and 3.9%, respectively.

This forecast is not limited to impressive dividend yields; our analysts are also optimistic about BHP’s growth trajectory. They have expressed this confidence through a positive buy rating and a target price of $49.90, indicating an anticipation of upward movement in the stock’s value.

bhp group dividend stocks

Woolworths Limited (ASX: WOW)

Dominating the retail sector, Woolworths Limited (ASX: WOW) is another top pick by our analysts, mainly due to its strong market presence and customer loyalty. The company, known for its Woolworths supermarkets and Big W stores, demonstrates a remarkable ability to adapt to market changes and maintain a dominant market share.

Our analysts are particularly impressed by Woolworths’ strategic approach to managing cost inflation, which should help safeguard its margins. This adaptability and market resilience have led analysts to assign a conviction buy rating to Woolworths, with a target price of $42.40.

Regarding dividends, expectations are set at $1.49 per share for the fiscal year 2024 and $1.63 for 2025. Given the current share price of $34.90, these projected dividends would yield 4.25% and 4.7%, respectively. Such yields make Woolworths an appealing choice for those investors who prioritize steady and reliable income streams alongside the potential for capital appreciation.

woolworths limited dividend stock

Endeavour Group Ltd (ASX: EDV)

Endeavour Group Ltd (ASX: EDV) is a notable player in the beverage industry, recognized for its leading market position and promising growth prospects.

The company’s current valuation is especially appealing to investors, with shares trading at a forward price-to-earnings (P/E) ratio of 16.9 for FY 2024. This valuation, coupled with an anticipated 5.2% compound annual growth rate in earnings per share from 2023 to 2026, underscores Endeavour’s potential as a solid investment choice. Reflecting this optimistic outlook, analysts have maintained a buy rating on the company and set a target price of $6.40.

Regarding dividends, the forecasts are 21 cents per share for FY 2023 and 23 cents for FY 2024. At Endeavour’s current share price of $4.95, these dividends imply yields of 4.25% and 4.65%, respectively. These figures suggest that Endeavour could be an attractive option for investors seeking to balance their portfolio with a mix of income generation and growth potential.

endeavour group dividend stock

 

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