Beat low interest rates with these buy-rated ASX dividend stocks
Fortunately for income investors in this low interest rate environment, there are a lot of ASX dividend stocks to choose from on the local market.
To narrow things down, let's take a look at two that analysts are recommending to clients today. Here's what you need to know:
IPH Ltd (ASX: IPH)
Analysts at Morgans remains positive on this intellectual property services company and believe it could be an ASX dividend stock to buy.
Although it has been battling tough trading conditions this year, the broker believes that it is still positioned to reward shareholders with some big dividends in the near term. In light of this, it thinks its shares are being undervalued by the market. It said:
On a like-for-like basis, IPH reported flat FY25 revenue and EBITDA -4% on pcp. Each geography recorded marginal LFL EBITDA pressure, a mix of lower filings (ANZ); cost inflation (Asia); and some temporary issues (CAD). Whilst organic growth is still challenged, the FY26 outlook for each division looks relatively stable or marginal incremental improvement. A cost out program (A$8-10m in FY26) will assist. IPH's valuation is undemanding (<10x FY26F PE), however investor patience is required given the delivery of organic growth looks to be the catalyst for a sustained re-rating.
Morgans is forecasting fully franked dividends of approximately 37 cents per share in both FY 2026 and FY 2027. Based on its current share price of $3.31, this would mean dividend yields of 11%.
The broker has a buy rating and $6.05 price target on its shares.
Universal Store Holdings Ltd (ASX: UNI)
The team at Bell Potter thinks that Universal Store could be an ASX dividend stock to buy now.
It is a youth fashion focused retailer behind the eponymous Universal Store brand. In addition, it owns the growing Perfect Stranger and Thrills brands.
Bell Potter likes the company due to its attractive valuation and positive growth outlook, which is being supported by its store expansion and margin improvements from private label growth. It explains:
At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging broader category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution. We continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.
As for income, the broker is forecasting fully franked payouts of 37.3 cents in FY 2026 and then 41.4 cents in FY 2027. Based on its current share price of $8.30, this represents dividend yields of 4.5% and 5%, respectively.
Bell Potter has a buy rating and $10.50 price target on its shares.
The post Beat low interest rates with these buy-rated ASX dividend stocks appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended IPH Ltd and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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