Overview of Morgans’ ASX Dividend Stock Recommendations for May
The Australian Securities Exchange (ASX) boasts a multitude of dividend-paying shares. Among them, analysts at Morgans have pinpointed a few standout options for investors in May. Presented here are three companies highlighted for their dividend prospects and underlying attributes that might catch the eye of those seeking income-generating investments.
Dalrymple Bay Infrastructure Ltd (ASX: DBI)
Dalrymple Bay Infrastructure, the coal terminal operator, currently holds an ‘add’ rating and a $3.03 price target from Morgans. Despite coal-related environmental, social, and governance (ESG) headwinds, the shares offer substantial yields, supported by CPI-linked revenue and various risk mitigants. Dividend yields are projected at 7.6% for FY 2024 and 7.8% for FY 2025.
QBE Insurance Group Ltd (ASX: QBE)
QBE Insurance Group is another firm on Morgans’ radar, with an ‘add’ rating and a $17.96 price target on its shares. The upbeat perspective stems from favorable valuations, increasing insurance rates, and anticipated cost reductions, which are expected to bolster QBE’s earnings. Partly franked dividends are estimated at 5.6% and 6.1% for FY 2024 and FY 2025, respectively.
Woodside Energy Group Ltd (ASX: WDS)
Woodside Energy Group, a major energy company, also earns a spot on Morgan’s preferred list, with an ‘add’ rating and a $36.00 price target. With quality earnings and a recent dip in share price, analysts believe Woodside presents an opportune purchase. Fully franked dividends are forecasted at 4.4% for FY 2024, increasing to 5.6% for FY 2025.
Considering these selections, investors aiming for solid dividends in combination with fundamentally strong companies might find valuable opportunities in these ASX-listed firms as suggested by Morgans’ latest insights.
Investment decisions should be based on thorough analysis and a clear understanding of market conditions and individual financial goals. These highlighted stocks represent just a fraction of the diverse options available on the ASX, and investors are encouraged to consider a broad range of factors before making investment choices.