Are you looking for income options for your portfolio? If you are, you may want to check out the ASX dividend shares listed below that brokers rate as buys.
Here's what you need to know about them:
Aurizon Holdings Ltd (ASX: AZJ)
The first ASX dividend share that could be a buy for income investors is Aurizon. It is a leading rail freight operator that transports more than 250 million tonnes of Australian commodities each year.
The team at Macquarie is bullish on Aurizon and expects a rebound in FY 2024 following a tough year following derailments and weather-related issues.
Its analysts expect this to lead to partially franked dividends of 18.4 cents per share in FY 2024 and then 25.1 cents per share in FY 2025. Based on the latest Aurizon share price of $3.61, this will mean dividend yields of 5.1% and 7%, respectively.
Macquarie currently has an outperform rating and a $4.04 price target on its shares.
Coles Group Ltd (ASX: COL)
Another ASX dividend share that could be a buy according to analysts is supermarket giant Coles.
Citi is positive on the company. Its analysts believe Coles' strong sales performance in FY 2023 reinforces its view "that the market looks too low on sales in FY24."
As for dividends, the broker is expecting a fully franked 61 cents per share dividend in FY 2024 and 68 cents per share in FY 2025. Based on the current Coles share price of $15.75, this will mean dividend yields of 3.9% and 4.3%, respectively.
Citi has a buy rating and $18.30 price target on its shares.
Universal Store Holdings Ltd (ASX: UNI)
A final ASX dividend share to consider for passive income is the youth fashion retailer Universal Store. Morgans is very positive on the company and believes some big dividend yields are coming in the near term.
The broker is forecasting fully franked dividends per share of 26 cents in FY 2024 and 29 cents in FY 2025. Based on the current Universal Store of $3.65, this will mean yields of 7.1% and 8%, respectively.
Morgans has an add rating and a $4.25 price target on its shares.
