The good news for income investors is that the Australian share market is home to plenty of dividend shares.
This makes it a great place to generate passive income.
But which ASX dividend shares might be good options today? Three that analysts rate as buys are named below:
MotorCycle Holdings Ltd (ASX: MTO)
Morgans thinks that this leading motorcycle dealership and accessories company would be a great option for income investors right now. Its analysts note that MotorCycle Holdings "continues to screen too cheap on ~6.5x FY24F PE."
The broker has an add rating and $2.60 price target on its shares.
As for dividends, Morgans is expecting fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. Based on the current MotorCycle Holdings share price of $2.04, this implies yields of 9.8%.
Super Retail Group Ltd (ASX: SUL)
Goldman Sachs thinks that Super Retail could be an ASX dividend share to buy. This week the broker responded to the retailer's quarterly update by retaining its buy rating and $14.40 price target on its shares.
It continues to believe "that the auto and sports categories remain more resilient amongst discretionary consumers."
As for income, the broker is expecting fully franked dividends per share of 62 cents in FY 2024 and then 64 cents in FY 2025. Based on the current Super Retail share price of $12.76, this will mean yields of 4.9% and 5%, respectively.
Transurban Group (ASX: TCL)
A final ASX dividend share that has been named as a buy is Transurban. It is a one of the world's leading toll road operators with 22 roads across Australia and North America, as well as four projects under development or delivery.
Citi currently has a buy rating and $15.90 price target on its shares. Its analysts "see upside given the strong EBITDA growth outlook (c.12% CAGR between Fy24-FY26)."
In respect to dividends, its analysts are forecasting dividends per share of 63 cents in FY 2024 and then 65 cents in FY 2025. Based on the current Transurban share price of $11.81, this will mean yields of 5.3% and 5.5%, respectively.
