Buy Rio Tinto and these ASX dividend stocks for 5%+ yields

Analysts think the mining giant and these stocks would be top options for income investors.

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The average dividend yield on the Australian share market usually sits at around 4%.

While this is a nice yield, income investors don't have to settle for it. Not when there are some high-quality ASX dividend stocks out there with notably better forecast yields.

Let's take a look at three that are expected to provide dividend yields greater than 5% this year and next:

Rio Tinto Ltd (ASX: RIO)

If you're not averse to investing in the mining sector, then Rio Tinto could be worth considering.

Goldman Sachs is feeling very positive about the mining giant and has a buy rating and a $138.90 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends per share of US$4.29 (A$6.42) in FY 2024 and then US$4.55 (A$6.81) in FY 2025. Based on the latest Rio Tinto share price of $128.52, this will mean yields of approximately 5% and 5.3%, respectively.

Telstra Group Ltd (ASX: TLS)

Goldman Sachs also thinks that income investors should consider buying Telstra shares while they are down.

Although the broker was quite disappointed with its recent trading update, it still sees significant value in the telco giant's shares at current levels and is forecasting some attractive yields from its shares in the coming years.

Goldman currently has a buy rating and a $4.25 price target on the ASX dividend stock.

As for income, its analysts are now expecting fully franked dividends of 18 cents per share in FY 2024 and then 18.5 cents per share in FY 2025. Based on the current Telstra share price of $3.47, this equates to dividend yields of 5.2% and 5.3%, respectively.

Transurban Group (ASX: TCL)

A third ASX dividend stock that could be a buy this month according to analysts is Transurban. It manages and develops urban toll road networks in Australia and the United States. In Australia, this includes the Cross City Tunnel, the Eastern Distributor, and Westlink M7.

Citi is a fan of the company and currently has a buy rating and a $15.50 price target on its shares.

As well as plenty of upside, its analysts are expecting some great yields from its shares in the coming years. For example, the broker is forecasting dividends per share of 63.6 cents in FY 2024 and then 65.1 cents in FY 2025. Based on the current Transurban share price of $12.59, this will mean dividend yields of 5% and 5.2%, respectively.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra 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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