Brokers say these ASX dividend shares are top buys now

Analysts have good things to say about these income options.

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A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate

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The good news for income investors is that there are a large number of ASX dividend shares to choose from on the Australian share market.

The hardest part can be deciding which ones to buy over others.

But don't worry, analysts have done all the hard work for you and picked out three shares that they think could be in the buy zone now. They are follows:

Deterra Royalties Ltd (ASX: DRR)

Deterra Royalties could be a good option for income investors that are not averse to investing in the mining sector.

Although the company doesn't do any mining itself, it reaps the rewards of others doing so. This is because it receives royalties from a range of operations. This includes the key asset in its portfolio – the Mining Area C iron ore operation in the Pilbara region of Western Australia.

Morgan Stanley believes that plenty of cash will be flowing into its bank accounts in the near term. So much so, it is forecasting bumper fully franked dividends per share of 32.7 cents in FY 2024 and 39 cents in FY 2025. Based on the current Deterra Royalties share price of $4.83, this will mean dividend yields of 6.75% and 8.1%, respectively.

Morgan Stanley has an overweight rating and $5.60 price target on its shares.


Another ASX dividend share that has been given the thumbs up by analysts is intellectual property solutions company, IPH.

Goldman Sachs is the broker recommending the company. It is positive due to its belief that IPH is "well-placed to deliver consistent and defensive earnings with modest overall organic growth."

The broker is expecting this to underpin fully franked dividends per share of 34 cents in FY 2024 and 37 cents in FY 2025. Based on the current IPH share price of $6.19, this represents yields of 5.5% and 6%, respectively.

Goldman currently has a buy rating and $8.70 price target on IPH's shares.

NIB Holdings Limited (ASX: NHF)

Another ASX dividend share that gets the seal of approval from analysts at Goldman Sachs is private health insurance giant NIB.

Goldman notes that NIB "offers defensive exposure to the private health insurance sector which is experiencing favourable operating trends."

It expects this to put the company in a position to pay fully franked dividends per share of 31 cents in FY 2024 and 30 cents in FY 2025. Based on the current NIB share price of $7.05, this would mean 4.4% and 4.25% yields, respectively.

Goldman currently has a buy rating and $8.10 price target on the company'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. The Motley Fool Australia has positions in and has recommended NIB Holdings. The Motley Fool Australia has recommended IPH. 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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