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Brokers say these ASX dividend shares are buys

Income investors might want to check out these dividend shares that have been given the thumbs up by brokers.

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James Mickleboro
James Mickleboro has been a Motley Fool contributor since late 2015. After studying economics at university back home in the United Kingdom, James came to live in Australia and managed to land a job at an Australian fund manager. This was the start of a love affair with Australian equities and he hasn't looked back since. James is part of the CFA Institute's Chartered Financial Analyst program and hopes it teaches him how to become an astute investor which allows him to help others with their own investing. Outside of reading and researching he spends many a late night watching the English Premier League and Seinfeld reruns.
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There are plenty of ASX dividend shares to choose from on the Australian share market.

Three that brokers believe are buys are listed below. Here's what they are saying about them:

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements

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Accent Group Ltd (ASX: AX1)

The team at Bell Potter believe footwear-focused retailer Accent could be an ASX dividend share to buy. The broker currently has a buy rating and a $2.50 price target on its shares.

Bell Potter believes the company is well-placed in the current environment thanks to "continuing casual footwear trends and as sports, fitness & wellness related spending remains a priority."

As for dividends, the broker is forecasting fully franked dividends per share of 12 cents in FY 2024 and then 14.1 cents in FY 2025. Based on the latest Accent share price of $2.04, this represents dividend yields of 5.9% and 6.9%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that brokers rate as a buy is HomeCo Daily Needs. It is a property company with a focus on neighbourhood retail, large format retail, and health and services.

Morgans is positive on the company and has an add rating and a $1.50 price target on its shares.

As for income, the broker is expecting some big dividend yields in the near term. It is forecasting dividends per share of 8.3 cents in FY 2024 and then 8.5 cents in FY 2025. Based on the current HomeCo Daily Needs share price of $1.11, this will mean yields of 7.5% and 7.7%, respectively.

MotorCycle Holdings Ltd (ASX: MTO)

Another ASX dividend share that brokers rate as a buy is this motorcycle dealership and accessories company. Morgans is also positive on it and has an add rating and a $2.60 price target on its shares.

The broker believes that MotorCycle Holdings "continues to screen too cheap on ~6.5x FY24F PE."

And with such as cheap valuation, Morgans expects some big dividend yields for this one as well. It is forecasting fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. Based on the current MotorCycle Holdings share price of $2.14, this implies yields of 9.3%.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group and HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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