Buy Rio Tinto and these ASX dividend stocks

Analysts think the mining giant and these shares could be top options for income investors.

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There are plenty of ASX dividend stocks to choose from on the local market. This can make it hard to decide which ones to buy.

To narrow things down I have picked out three dividend options that analysts have recently named as buys and tipped to provide income investors with good dividend yields.

Here's what you need to know about these ASX dividend stocks:

Aurizon Holdings Ltd (ASX: AZJ)

The first ASX dividend stock that could be a buy is Australia's largest rail freight operator Aurizon.

It transports a range of commodities, including mining, agricultural, industrial and retail products for a diverse range of customers across a network spanning thousands of kilometres.

Analysts at Ord Minnett believe the company's network will generate sufficient profits to pay some very attractive dividends in the near term, The broker has pencilled in partially franked dividends of 17.8 cents per share in FY 2024 and then 24.3 cents per share in FY 2025. Based on the current Aurizon share price of $3.88, this will mean dividend yields of 4.5% and 6%, respectively.

Ord Minnett has an accumulate rating and a $4.70 price target on its shares.

Rio Tinto Ltd (ASX: RIO)

Another ASX dividend stock that could be a buy, if you're not averse to investing in the mining sector, is Rio Tinto.

Goldman Sachs is a fan of the mining behemoth due to its positive free cash flow and production outlook. And while it wasn't blown away by the miner's quarterly update last week, it remains very positive and sees value in its shares at the current level.

In addition, the broker continues to forecast some above-average dividend yields from the miner's shares in the near future. It is now forecasting fully franked dividends of US$4.30 per share in FY 2024 and then US$4.50 per share in FY 2025. This equates to A$6.70 per share and then A$7.01 per share at current exchange rates.

Based on the current Rio Tinto share price of $129.52, this represents yields of 5.2% and 5.4%, respectively.

Goldman has a buy rating and a $138.90 price target on its shares.

Rural Funds Group (ASX: RFF)

The team at Bell Potter thinks that Rural Funds could be an ASX dividend stock to buy.

It is an agricultural property company that owns assets including almond orchards, macadamia orchards, vineyards, cattle properties, and cropping properties.

Bell Potter believes that its shares are undervalued at current levels and is forecasting above-average dividend yields in the near term. It is expecting dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $1.95, this will mean yields of 6% in both years.

The broker currently has a buy rating and a $2.40 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 positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Aurizon. 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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