Buy BHP and these ASX dividend shares in May

Analysts have put buy ratings on these income options.

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Thankfully for income investors, there are plenty of dividend shares to choose from on the ASX.

To narrow things down, let's now take a look at a few from different areas of the market that analysts have named as buys. They are as follows:

APA Group (ASX: APA)

The first ASX dividend share for income investors to consider buying is APA Group.

It could be a great option if you're looking for defensive options. That's because APA Group is an energy infrastructure business that owns and operates a $27 billion portfolio of gas, electricity, solar and wind assets.

This portfolio has allowed the company to grow its dividend each year for almost 20 years. The good news is that Macquarie feels confident this trend will continue.

It has pencilled in further dividend increases to 56 cents per share in FY 2024 and 57.5 cents per share in FY 2025. Based on the current APA Group share price of $8.27, this equates to 6.8% and 7% dividend yields, respectively.

Macquarie has an outperform rating with a $9.40 price target on its shares.

BHP Group Ltd (ASX: BHP)

If you don't mind investing in the mining sector, then another ASX dividend share that could be a buy is BHP.

It is of course one of the world's largest miners and the owner of a high-quality portfolio of assets and operations across a number of other commodities.

Goldman Sachs is a big fan of the Big Australian and thinks its shares are great value at current levels. The broker also expects some good yields from its shares in the near term.

It is forecasting fully franked dividends of US$1.45 (A$2.21) per share in FY 2024 and then US$1.26 (A$1.92) per share in FY 2025. Based on the current BHP share price of $42.38, this equates to dividend yields of 5.2% and 4.5%, respectively.

Goldman currently has a buy rating and a $49.20 price target on the miner's shares.

Super Retail Group Ltd (ASX: SUL)

A third ASX dividend share that has been named as a buy is Super Retail. It is the owner of retail brands BCF, Macpac, Rebel, and Super Cheap Auto.

Goldman also likes Super Retail. This is due largely to the vast loyalty program. The broker continues to "believe that SUL is building a competitive advantage through 11.1mn members and 76% sales to members, which will help drive sales in a more complex operating environment."

The broker expects this to underpin fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $13.90, this will mean yields of 4.8% and 5.25%, respectively.

Goldman has a buy rating and a $17.80 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 and Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group, Macquarie Group, and Super Retail Group. 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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