9 ASX income stocks for 2024

For a while now, we've been hearing that income as a source of return will be increasingly important in the coming period of elevated inflation. To provide investors with a starting point for ASX-listed ideas, we recently ran a simple screen. 

The following companies were identified using the broker research tool Halo to identify companies with a market cap of more than $1 billion and with the following criteria:

• Forward return on equity of more than 10. ROE is considered a gauge of a corporation's profitability and how efficient it is in generating profits. The higher the ROE, the more efficient a company's management is at generating income and growth.
• A one-year forward yield of more than 6%. A useful starting point but by no means a comprehensive indicator, dividend yield shows how much a company pays out each year relative to its share price.
• Broker consensus score of more than 5 (out of 10): So, on balance, more bullish than bearish. 

Note: The following article is general information only and shouldn’t be considered financial advice. Please consult your own financial adviser before making any investment decisions.

Air New Zealand (ASX: AIZ)

• ROE 1-year forward: 12.28%
• Yield 1-year forward: 7.38%
• Broker consensus: 5.71

The flagship carrier of New Zealand, AIZ recently made headlines for its early foray into electric aircraft, announcing its purchase of an ALIA plane that will be used for cargo shipments by the end of the decade.

After the de-listing of Virgin in 2020, AIZ is one of just four airlines listed on the ASX, alongside Qantas, Alliance Aviation Services, and Regional Express Holdings.

What the brokers think

• Jarden downgraded Air New Zealand to NEUTRAL from overweight on 28 August, with a price target of 79 NZ cents.
• Barrenjoey rates the company NEUTRAL with a price target of NZ 70 cents as of 23 September 2022.

Air New Zealand shares closed at 60 cents on Monday 11 December.

Ampol Limited (ASX: ALD)

• ROE 1-year forward: 19.69%
• Yield 1-year forward: 6.63%
• Broker consensus: 8.63

Touchstone Asset Management recently highlighted the fuel retailer as a beneficiary of high oil prices.

What the brokers think

• Goldman Sachs rates Ampol as BUY with a price target of $37.
• UBS downgraded the company to NEUTRAL from buy on 22 August, cutting its price target to $32.60 from $33.30.

Ampol shares closed at $34.77 on Monday 11 December.

APA Group (ASX: APA)

• ROE 1-year forward: 10.37%
• Yield 1-year forward: 6.42%
• Broker consensus: 6.81

The gas pipeline company was recently nominated as a company of interest by Susanta Mazumdar, founder and PM of the Tribeca Asia Infrastructure Fund.

“It is one of only eight companies on ASX that has been able to grow or maintain dividends over the past 12 years,” he told my colleague Chris Conway last month.

What the brokers think

• Barrenjoey upgraded APA to NEUTRAL from underweight on 15 August, with a price target of $9.49.
• JPMorgan on 11 July upgraded the company to OVERWEIGHT from neutral, with a price target of $11.20.

APA Group shares closed at $8.65 on Monday 11 December.

APM Human Services (ASX: APM)

• ROE 1-year forward: 10.93%
• Yield 1-year forward: 6.68%
• Broker consensus: 9.28

The employment, aged care and disability services company has struggled during the near full-employment environment of recent years. This is reflected in its share price, which is down more than 46% year to date.

The company was among eight that Goldman Sachs named as “emerging leaders” at a conference earlier this year, as reported by my colleague Kerry Sun.

What the brokers think

• Bell Potter downgraded APM to HOLD on 13 November with a price target of $1.90.
• Canaccord Genuity rates the company BUY as of 6 November, with a price target of $2.65.
• Jefferies rates APM as BUY with a price target of $2.40 as of 27 October.

APM shares closed at $1.29 on Monday 11 December.

Accent Group (ASX: AX1)

• ROE 1-year forward: 15.78%
• Yield 1-year forward: 6.11%
• Broker consensus: 6.5

The footwear retailer was recently discussed by Maple-Brown Abbott’s Phillip Hudak in a discussion about the implications of wage inflation in Australia.

“Based on our research and industry feedback, retailers exposed to the youth consumer, including Accent Group and Universal Stores, are experiencing challenging top-line sales growth, coupled with wage inflation expectations of at least mid-single digit percentage growth,” he wrote in November.

What the brokers think

• Citi downgraded Accent Group to NEUTRAL from buy on 20 November, with a price target of $1.93.
• Wilsons downgraded the company to MARKET-WEIGHT from overweight on 19 November with a price target of $1.90.

Accent Group shares closed at $1.87 on Monday 11 December.

GQG Partners (ASX: GQG)

• ROE 1-year forward: 80.64%
• Yield 1-year forward: 8.59%
• Broker consensus: 10

An asset manager focused on international and emerging market equities, GQG is one of several in the space that has been bidding for competing firms. TAMIM Asset Management’s Ron Shamgar recently mentioned GQG’s bid to acquire Pacific Current Group.

What the brokers think

• Goldman Sachs rates GQG Partners as BUY as of 27 July, with a price target of $1.80.
• Macquarie rates the company as OUTPERFORM with a price target of $1.95 as of 4 November 2022.

GQG Partners' shares closed at $1.49 on Monday 11 December.

Liberty Financial Group (ASX: LFG)

• ROE 1-year forward: 12.63%
• Yield 1-year forward: 7.77%
• Broker consensus: 6.66

Non-bank lender Liberty Financial Group has operations in the Netherlands, New Zealand and Australia, where it provides specialty lending, insurance broking, and other financial services.

What the brokers think

• Citi rates the firm NEUTRAL with a price target of $4.10 as of 29 August.
• Macquarie rates Liberty Financial NEUTRAL with a price target of $3.65 as of 29 August.

Liberty Financial Group's shares closed at $3.85 on Monday 11 December.

Mcmillan Shakespeare (ASX: MMS)

• ROE 1-year forward: 68.39%
• Yield 1-year forward: 6.32%
• Broker consensus: 10

Novaport Capital’s Sinclair Currie in September discussed the fleet and salary packing company among companies benefiting from tailwinds generated by electric vehicle uptake. 

What the brokers think

• CLSA upgraded Mcmillan Shakespeare to BUY from underperform on 30 October, with a price target of $20.20.
• Citi upgraded MMS to BUY from neutral on 25 October with a price target of $20.70.

Mcmillan Shakespeare shares closed at $16.42 on Monday 11 December.

Yancoal Australia (ASX: YAL)

• ROE 1-year forward: 41.56%
• Yield 1-year forward: 16.97%
• Broker consensus: 10

Romano Sala Tenna, who runs the Katana Australian Equity Fund, has been building his position in companies including thermal coal producer Yancoal for a while now. 

Yancoal shares closed at $4.89 on Monday 11 December.

Yancoal isn't currently covered by any local brokers.

Tell us what you think

Do you own these or any other ASX companies primarily for their income attributes? Please let us know in the comments below.