The average dividend yield on the Australian share market is traditionally around 4%.
But investors don't have to settle for that. Not when there are high-yield options like the three listed below to choose from.
Here's what sort of yields you can expect from these ASX dividend shares:
APA Group (ASX: APA)
The first high-yield ASX dividend share that could be a buy is APA Group.
APA Group is an energy infrastructure company with 15,000 kilometres of natural gas pipelines connecting sources of supply and markets across mainland Australia.
This network and its defensive and growing earnings has allowed the company to grow its dividend each year for almost two decades. Macquarie believes that this trend will continue and is forecasting dividends per share of 56 cents in FY 2024 and then 57.5 cents in FY 2025. Based on the current APA Group share price of $8.32, this equates to 6.7% and 6.9% dividend yields, respectively.
Macquarie has an outperform rating and $9.40 price target on its shares.
GDI Property Group Ltd (ASX: GDI)
Another high-yield ASX dividend share that could be a buy is GDI Property. It is a fully integrated, internally managed property and funds management group.
Bell Potter is positive on the company and believe it is well-positioned to deliver some big dividend yields in the coming years.
The broker is currently forecasting dividends of 5 cents per share across FY 2024, FY 2025, and FY 2026. Based on the current GDI Property share price of 59 cents, this implies dividend yields of 8.5% each year.
Bell Potter currently has a buy rating and 75 cents price target on its shares.
South32 Ltd (ASX: S32)
Another ASX dividend share that could provide investors with some big dividend yields is diversified miner South32.
That's the view of analysts at Goldman Sachs, who believe South32's earnings are going to get a major boost thanks to strong copper, aluminium, zinc, and met coal prices. It notes that these commodities make up an estimated 65% of South32's earnings over the next 12 months.
However, while big dividend yields are expected, income investors will have to be a little patient. Goldman is expecting fully franked dividends per share of 4 US cents in FY 2024, 12 US cents in FY 2025, and then 18 US cents in FY 2026. Based on its latest share price of $3.37 and current exchange rates, this will mean yields of 1.8%, 5.6%, and 8.5%, respectively.
Goldman has a buy rating and a $3.80 price target on South32's shares.
