Liz GregoryInvestors seeking lucrative dividend opportunities should consider two standout ASX stocks, promising not only attractive yields but also potential growth. Here’s a closer look at these compelling investment options: Coles Group Ltd and Nickel Industries Ltd.
Coles Group Ltd (ASX: COL): As a major player in Australian retail, Coles Group operates over 1,800 outlets, including more than 840 supermarkets and a comprehensive liquor store network through Liquorland, First Choice, and Vintage Cellars. With a robust business model, Coles is pegged for substantial growth, offering fully franked dividends of 68 cents per share forecasted for FY 2025, climbing to 78 cents in FY 2026. This translates to yields of about 3.6% and 4.1% respectively, based on its present share price of $19.01. Analysts from Bell Potter advocate for investing in Coles stock now, setting a price target at $20.50, driven by its promising earnings growth profile.
Nickel Industries Ltd (ASX: NIC): For those open to the resource sector, Nickel Industries presents an enticing choice. Esteemed as a cost-efficient producer of nickel pig iron crucial for stainless steel, the company’s strategic growth is fully funded. Even as it navigates peak capital expenditure stages, strong earnings expansion is anticipated in the coming years. With an unfranked dividend projection of 5 cents per share for both FY 2024 and FY 2025, Nickel Industries offers an impressive yield of 5.7% at its current price of 88 cents. Valued by Bell Potter for its potential, the stock holds a buy recommendation, with a target price of $1.43, making it an undervalued gem in the market.
Discover High-Yield ASX Stocks: Coles Group and Nickel Industries
Investors looking for promising dividends and growth potential on the Australian Securities Exchange have reasons to consider Coles Group Ltd and Nickel Industries Ltd. These stocks offer compelling opportunities in retail and resources, presenting both attractive yields and future gains.
Coles Group Ltd: Retail Giant with Growth on the Horizon
Coles Group Ltd stands out as a major player in the Australian retail sector. Operating over 1,800 outlets, which include more than 840 supermarkets and an extensive liquor store network, Coles is well-positioned for growth. Its liquor brands, such as Liquorland, First Choice, and Vintage Cellars, bolster its market reach. Analysts have highlighted Coles’ strong business model, projecting fully franked dividends of 68 cents per share for FY 2025 and increasing to 78 cents by FY 2026. This translates to impressive yields of approximately 3.6% and 4.1%, respectively, based on its current share price of $19.01. With a price target set at $20.50, analysts at Bell Potter suggest that Coles is poised for a positive earnings trajectory.
# Features and Market Position:
– Extensive retail presence with over 840 supermarkets.
– Diversified offerings across grocery and liquor.
– Prospective dividend growth aligning with market stability.
Nickel Industries Ltd: Resource Sector’s Hidden Gem
Nickel Industries Ltd offers a unique opportunity within the resource sector as an efficient producer of nickel pig iron, essential for stainless steel manufacturing. Despite entering peak capital expenditure phases, its strategic growth is well-funded, setting the stage for substantial earnings expansion. Presenting unfranked dividend projections of 5 cents per share for FY 2024 and 2025, at an 88 cents share price, it offers an appealing yield of 5.7%. With a target price of $1.43 from Bell Potter, Nickel Industries is perceived as undervalued with significant room for growth.
# Innovations and Market Insights:
– Low-cost production advantage in nickel pig iron.
– Fully funded strategic growth initiatives.
– Undervalued stock with high yield and growth predictions.
Conclusion
Both Coles Group Ltd and Nickel Industries Ltd present solid investment prospects, each offering distinct benefits. Coles remains steady with its established market presence and growth in retail, while Nickel Industries promises high returns in the resource sector with its undervalued stock position and future earnings optimism.
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