Analysts think these high-yield ASX dividend shares are buy in May

Income investors might want to check out these top stocks.

| More on:
Woman holding $50 and $20 notes.

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 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.

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 and Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group and Macquarie Group. 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

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
Dividend Investing

Buy Rio Tinto and these excellent ASX dividend shares

Goldman Sachs is tipping these dividend shares are top buys.

Read more »

Excited woman holding out $100 notes, symbolising dividends.
Dividend Investing

Global companies just paid a record $512 billion in Q1 dividends. Here's how ASX 200 shares stacked up

ASX dividend stocks increased payouts by 2.0% in Q1, according to Janus Henderson, with BHP dragging on growth.

Read more »

shopping trolley filled with coins representing asx retail share price.ce
Dividend Investing

Should you buy Coles shares for that hefty 6% dividend yield?

Should Coles stock go in your shopping basket?

Read more »

A happy woman and girl kick back on a couch in spa robes with cucumbers on their eyes, indicating they can earn passive income while relaxing.
Dividend Investing

2 of the best passive-income-focused ASX shares to consider buying in June

Wanting passive income? Analysts think these shares could be top options.

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

These ASX dividend shares offer 6%+ yields right now

Analysts think these high yield stocks are in the buy zone.

Read more »

Happy couple enjoying ice cream in retirement.
Dividend Investing

Why I keep loading up on these 2 ASX passive income machines

I can’t stop buying these dividend stocks.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Dividend Investing

Buy these ASX dividend stocks for passive income

These dividend stocks could be a good source of passive income according to analysts.

Read more »

A young woman uses a laptop and calculator while working from home.
Index investing

Does the iShares S&P 500 ETF (IVV) pay a decent ASX dividend?

This popular ETF might be worth more than its dividends...

Read more »