What analysts are saying about these ASX dividend stocks?

2 min read | December 27, 2024 11:34 AM AEDT | By Team Kalkine Media

What analysts are saying about these ASX dividend stocks? — Image source: shutterstock

Challenger Ltd (ASX:CGF)

Challenger, a leading annuities provider, is receiving attention from Goldman Sachs due to its favorable position in the growing superannuation market. The broker has issued a buy rating for Challenger, with a price target of $7.82, citing its exposure to rising demand for retail annuities fueled by higher yields.

Goldman Sachs forecasts fully franked dividends of 27 cents per share in FY25 and 28 cents per share in FY26. Based on the current share price of $6.01, this implies dividend yields of 4.5% and 4.65%, respectively. Challenger’s strong positioning in the superannuation sector and favorable market conditions make it a compelling choice for dividend-focused portfolios.

Dexus Property Group (ASX:DXS)

Dexus, one of Australia's premier real estate groups, is another strong candidate for income investors. Analysts at UBS are optimistic about Dexus, assigning a buy rating with a price target of $8.86.

Dexus manages a top-tier portfolio of real estate and infrastructure assets valued at $54.5 billion, including an investment portfolio and a funds management business. UBS predicts that Dexus will pay dividends of 37 cents per share in FY25 and 38 cents per share in FY26. With the current share price at $7.10, these dividends equate to yields of 5.2% and 5.35%, respectively.

Why Consider These Stocks?

Both Challenger and Dexus offer attractive yields and are well-positioned to capitalize on sector-specific growth trends. Challenger’s alignment with the expanding superannuation market and Dexus’ strong real estate portfolio provide stable foundations for dividend growth.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.