Buy Rio Tinto and these excellent ASX dividend shares

Goldman Sachs is tipping these dividend shares are top buys.

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If you are trying to decide which ASX dividend shares to add to your income portfolio, then it could be worth looking at three listed below that Goldman Sachs is bullish on.

Here's what you need to know about these income options:


The first ASX dividend share for income investors to look at is IPH. Goldman is a big fan of the intellectual property solutions company and believes it is "well-placed to deliver consistent and defensive earnings with modest overall organic growth."

The broker expects this to underpin fully franked dividends of 34 cents per share in FY 2024 and 37 cents per share in FY 2025. Based on the current IPH share price of $6.16, this represents yields of 5.5% and 6%, respectively.

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

Rio Tinto Ltd (ASX: RIO)

Another ASX dividend share that Goldman Sachs is positive on is Rio Tinto.

It is one of the largest miners in the world and the owner of a portfolio of operations across a number of commodities. This includes the Gudai-Darri iron ore mine and the ISAL aluminium smelter.

Goldman Sachs like the company due to its belief that "Rio is a FCF and production growth story."

The broker expects this to support the payment of fully franked dividends per share of US$4.29 (A$6.49) in FY 2024 and then US$4.55 (A$6.88) in FY 2025. Based on the latest Rio Tinto share price of $132.50, this will mean yields of approximately 4.9% and 5.2%, respectively.

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

Suncorp Group Ltd (ASX: SUN)

A third ASX dividend share that has been given the thumbs up by analysts at Goldman Sachs is Suncorp.

It is one of Australia's largest insurance companies, operating countless brands including AAMI, Apia, Bingle, GIO, Shannons, and Vero.

In addition, the company has Suncorp Bank. However, these banking operations are in the process of being sold to big four bank ANZ Group Holdings Ltd (ASX: ANZ) for $4.9 billion. Once complete, Suncorp will be a pure-play insurance provider. It may also return some of the proceeds to shareholders via a special dividend or share buyback.

For now, though, Goldman expects Suncorp to pay fully franked dividends per share of 78 cents in FY 2024 and 83 cents in FY 2025. Based on the current Suncorp share price of $16.00, this will mean dividend yields of 4.9% and 5.2%, respectively.

The broker has a buy rating and $17.54 price target on Suncorp'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 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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