Buy BHP and these ASX dividend shares

Analysts think these income options would be great picks this month.

| More on:
Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.

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

Fortunately for income investors, the Australian share market is home to a large number of dividend-paying shares.

But which ones could be good options for them right now? Let's take a look at three options from very different sides of the market that analysts are tipping as buys this month.

Here's what they are forecasting for these top ASX dividend shares:

BHP Group Ltd (ASX: BHP)

If you are happy to invest in the mining sector, then it could be a good idea to look at mining giant BHP.

That's because Goldman Sachs thinks the Big Australian will provide investors with a combination of big gains and attractive dividend yields.

The broker currently has a $49.00 price target on the miner's shares. This compares favourably to the current BHP share price of $42.80.

As for dividends, the broker is forecasting fully franked dividends of US$1.42 (A$2.13) per share in FY 2024 and then US$1.26 (A$1.89) per share in FY 2025. At current levels, this equates to dividend yields of 5% and 4.4%, respectively.

Dexus Convenience Retail REIT (ASX: DXC)

Another ASX dividend share that analysts are positive on is Dexus Convenience Retail REIT.

It is a property company that owns a portfolio of service station and convenience retail assets located across Australia.

The team at Morgans is feeling very positive about the company and has an add rating and $3.23 price target on its shares.

In respect to income, the broker is expecting dividends per share of 21 cents in both FY 2024 and FY 2025. Based on its current Dexus Convenience Retail REIT share price of $2.67, this will mean very large dividend yields of 7.85% in both years.

Transurban Group (ASX: TCL)

A third ASX dividend share that could be a top buy for income investors according to analysts is Transurban.

It is a toll road giant that manages and develops road networks in Australia and North America. In Australia, this includes key roads such as the Cross City Tunnel, the Eastern Distributor, and Westlink M7.

Analysts at Citi are bullish on Transurban and currently have a buy rating and $15.50 price target on its shares.

As for dividends, 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 $12.58, this will mean yields of 5% and 5.2%, respectively, for income investors.

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 no position in any of the stocks mentioned. 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

A doctor or medical expert in COVID protection adjusts her glasses, indicating growth or strong share price movement in ASX medical, biotech and health companies
Healthcare Shares

Should I buy CSL shares now for their 'steadily growing' dividends?

CSL has increased its interim and final dividend payouts for four years running now.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

3 excellent ASX 300 income stocks for investors to buy

Analysts think these stocks could be in the buy zone right now.

Read more »

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

3 of the best ASX dividend stocks to buy now

Analysts have given the thumbs up to these stocks. Let's find out why.

Read more »

Man looking amazed holding $50 Australian notes, representing ASX dividends.
Dividend Investing

2 ASX dividend shares to buy next week

Brokers have good things to say about these income options.

Read more »

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
Dividend Investing

Top brokers name 3 ASX dividend stocks to buy

These dividend shares were give the thumbs up by analysts last week. But why?

Read more »

Man smiling at a laptop because of a rising share price.
Dividend Investing

One ASX dividend machine I'd buy over Fortescue shares right now

When it comes to dividends, growth can be better than a high yield.

Read more »

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

3 ASX dividend stocks with great yields to buy today

These dividend options have been given the thumbs up by analysts.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Dividend Investing

How big will the BHP dividend be in 2025?

Let's see if the mining giant will be rewarding shareholders with more generous dividends.

Read more »