If you're searching for ASX dividend shares to buy for a source of passive income, then the three listed below could be worth looking at.
All three have been tipped as buys with plenty of upside potential and attractive future yields.
Here's what you need to know about them:
Rural Funds Group (ASX: RFF)
The first ASX dividend share that could be a buy is Rural Funds.
It is an agricultural property company, generating revenue from leasing almond orchards, macadamia orchards, poultry property and infrastructure, vineyards, cattle properties, cropping properties, cattle and water rights.
Bell Potter is very positive on the company and has a buy rating and a $2.40 price target on its shares.
As for dividends, the broker is forecasting dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.07, this will mean yields of 5.7% for investors.
Telstra Group Ltd (ASX: TLS)
Another ASX dividend share that has been given the thumbs up by analysts is Telstra.
Goldman Sachs is a fan of the telco giant in the current environment and has a buy rating and a $4.70 price target on its shares. It thinks the "low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive."
Speaking of dividend growth, the broker is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.88, this equates to fully franked yields of 4.6% and 4.9%, respectively.
Universal Store Holdings Ltd (ASX: UNI)
A final ASX dividend share that could be a buy is youth fashion retailer Universal Store.
That's the view of analysts at Morgans, which believe the Perfect Stranger and Thrills owner's shares are "undervalued" at current levels. The broker has an add rating and a $4.55 price target on them.
As for dividends, Morgans is forecasting fully franked dividends of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on the latest Universal Store share price of $4.05, this equates to yields of 6.4% and 7.2%, respectively.
