3 ASX dividend shares to buy with 5% to 7% yields

Analysts expect big yields from these buy-rated shares.

| More on:
Australian dollar notes inside the pocket on jeans, symbolising dividends.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The average dividend yield on the Australian share market is approximately 4%.

But investors don't need to settle for that. Not where there are high-yield ASX dividend shares out there to choose from.

Three such examples are listed below. Here's why analysts rate them as buys:

Accent Group Ltd (ASX: AX1)

Bell Potter thinks that Accent Group could be a top ASX dividend share to buy. It is footwear-focused retailer operating over 800 stores across brands including Sneaker Lab, Platypus, Stylerunner, and The Athlete's Foot.

Its analysts like the company due to its "growth adjacencies via exclusive partnerships with globally winning brands such as Hoka and growing vertical brand strategy."

Bell Potter expects this to support fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the latest Accent share price of $1.92, this represents dividend yields of 6.8% and 7.6%, respectively.

Bell Potter has a buy rating and a $2.50 price target on its shares.

IPH Ltd (ASX: IPH)

Another ASX dividend share for investors to look at is IPH. It is an intellectual property solutions firm offering a wide range of services for the protection, commercialisation, enforcement, and management of intellectual property.

Goldman Sachs is very positive on the company and believes it is "well-placed to deliver consistent and defensive earnings with modest overall organic growth."

The broker expects this to underpin the payment of fully franked dividends of 34 cents per share in FY 2024 and 37 cents per share in FY 2025. Based on the current IPH share price of $6.21, this represents yields of 5.5% and 6%, respectively.

Goldman also sees plenty of upside for investors with its buy rating and $8.70 price target.

Rio Tinto Ltd (ASX: RIO)

A third ASX dividend share that could be a buy is Rio Tinto. It is of course one of the world's largest mining companies. It owns a collection of world-class operations across several commodities and geographies. This includes the Gudai-Darri iron ore mine and the ISAL aluminium smelter in Iceland.

Goldman Sachs is also feeling very positive about the miner due to its production outlook. It highlights that "Rio is a FCF and production growth story in our view, with forecast Cu Eq production growth of ~5-6% in 2024 & 2025."

Goldman expects this to support the payment of fully franked dividends per share of US$4.39 (A$6.77) in FY 2024 and then US$4.61 (A$7.11) in FY 2025. Based on the latest Rio Tinto share price of $127.90, this will mean yields of approximately 5.3% and 5.6%, respectively.

Goldman has a buy rating and a $140.20 price target on its shares.

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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Accent Group and IPH. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Woman calculating dividends on calculator and working on a laptop.
Dividend Investing

What's the dividend yield of NAB shares right now?

What’s the size of NAB’s payout?

Read more »

Older couple enjoying the backyard
Dividend Investing

3 ASX 200 dividend stocks for investors to buy

Analysts are expecting these stocks to provide great yields. But how great?

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Dividend Investing

2 cheap ASX dividend shares I'd buy for income

I think these two stocks can provide excellent dividends.

Read more »

Dividend Investing

Forget term deposits and buy these ASX dividend shares

These dividend shares have been tipped by analysts to provide investors with yields that are superior to term deposits.

Read more »

A woman in hammock with headphones on enjoying life which symbolises passive income.
Dividend Investing

Buy 300 shares in this glorious ASX 200 dividend stock and create almost $2,000 in passive income

Atop the juicy passive income, I like this ASX dividend beauty for its potential share price gains.

Read more »

A pilot stands in an empty passenger cabin smiling with his arms crossed looking excited
Dividend Investing

Here's the Qantas dividend forecast through to 2026

Will the Flying Kangaroo bring back its dividend soon?

Read more »

Smiling young parents with their daughter dream of success.
Dividend Investing

Top ASX dividend shares to buy in May 2024

Who could use a little extra cash right now?

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Dividend Investing

Looking to retire? Buy these ASX dividend shares for passive income

Analysts think these income stocks are in the buy zone right now.

Read more »