If you're building an income portfolio, incorporating some ASX 300 dividend stocks that provide attractive dividend yields is always a prudent strategy. Here are three top income stocks that analysts recommend for investors looking to bolster their portfolios with steady dividends and potential growth.

Aurizon Holdings Ltd (ASX: AZJ)

Aurizon Holdings Ltd, a major player in the rail freight industry, is a compelling option for income investors. This company is responsible for transporting over 250 million tonnes of Australian commodities annually, connecting miners, primary producers, and various industries to both international and domestic markets.


Analysts at Ord Minnett are optimistic about Aurizon's future prospects, particularly regarding its potential to deliver attractive dividend yields. The firm is forecasting partially franked dividends of 17.8 cents per share in FY 2024 and 24.3 cents per share in FY 2025. Given the current Aurizon share price of $3.63, these figures translate to yields of 4.9% and 6.7%, respectively.


Ord Minnett has assigned an accumulate rating and a $4.70 price target to Aurizon's shares, indicating significant upside potential for investors who get in now.

Dexus Industria REIT (ASX: DXI)

Dexus Industria REIT is another standout ASX 300 dividend stock for income investors. This real estate investment trust (REIT) focuses on industrial warehouses, a sector with robust demand and growth potential.


Morgans analysts have a positive outlook on Dexus Industria, emphasizing its strong position in the industrial property market and its promising development pipeline. According to Morgans, "DXI's industrial portfolio remains robust with a positive outlook for rental growth. The development pipeline also provides near and medium-term upside potential, and post asset sales, there is balance sheet capacity to execute."


The broker forecasts dividends per share of 16.4 cents in FY 2024 and 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $3.00, these projections imply dividend yields of 5.5% and 5.5%, respectively.


Morgans has given Dexus Industria an add rating and a $3.18 price target, suggesting a stable and potentially lucrative investment for income-focused portfolios.

Woodside Energy Group Ltd (ASX: WDS)

Woodside Energy Group Ltd is one of the world's largest energy producers and a formidable choice for dividend investors. Despite recent share price weakness, Woodside remains a strong contender due to its significant role in global energy markets.


Morgans analysts advocate for adding Woodside Energy to portfolios, noting that current share price levels present an attractive entry point. They recently stated, "We see now as a good time to add to positions."


On the income front, Morgans is projecting fully franked dividends of $1.25 per share in FY 2024 and $1.57 per share in FY 2025. With a current share price of $27.25, these figures correspond to attractive dividend yields of 4.6% and 5.75%, respectively.


Morgans has assigned an add rating and a $36.00 price target to Woodside's shares, indicating substantial potential for growth and income generation.

Why These ASX 300 Stocks Are Top Picks for Income Investors

One of the key reasons we favor these stocks is their history of consistent dividend payments. Aurizon, Dexus Industria, and Woodside Energy have all demonstrated reliability in distributing dividends, even during challenging economic periods. This stability makes them attractive options for investors seeking regular income.


Each of these companies holds a dominant position in their respective markets. Aurizon is a leader in rail freight, Dexus Industria is well-established in the industrial real estate sector, and Woodside Energy is a global energy powerhouse. Their strong market positions provide a level of security and potential for continued profitability, which is essential for sustaining and growing dividends.


Despite their established market positions, all three companies have significant growth potential. Aurizon continues to expand its freight operations, Dexus Industria is benefiting from strong demand for industrial properties, and Woodside Energy is poised to capitalize on global energy needs. These growth prospects are crucial for long-term dividend sustainability and capital appreciation.


Aurizon and Woodside Energy, in particular, offer attractive valuations due to recent share price movements. These lower prices present a buying opportunity for investors seeking higher yields. While Dexus Industria's share price remains steady, its robust portfolio and development pipeline make it a valuable addition to a diversified income portfolio.

Building a Diversified Income Portfolio

While these three ASX 300 stocks are excellent choices for creating lasting passive income, a well-rounded income portfolio should include a broader selection of dividend-paying stocks across various sectors. Diversification reduces risk and enhances the potential for stable, long-term returns. Investors should consider adding stocks from different industries, such as healthcare, consumer goods, and technology, to their portfolios.


It's important to note that future dividend yields may vary based on a range of factors, including company performance, economic conditions, and industry trends. Investors should regularly review their portfolios and stay informed about the companies they invest in to make informed decisions.


Creating lasting passive income through the right ASX 300 stocks can significantly impact your financial future. Aurizon Holdings Ltd, Dexus Industria REIT, and Woodside Energy Group Ltd are top picks for their stable dividend payments, strong market positions, growth potential, and attractive valuations. By incorporating these stocks into a diversified income portfolio, investors can enjoy a steady stream of income and the potential for capital appreciation.