Buy these ASX dividend shares for 5% to 6% yields

Analysts think income investors should be snapping up these buy-rated stocks.

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Income investors have a lot of options on the Australian share market. So much so, it can be hard to decide which ASX dividend shares to buy above others.

But don't worry because listed below are three options with generous dividend yields that are rated highly by analysts. Here's what they are saying about these dividend shares:

IPH Ltd (ASX: IPH)

Analysts at Goldman Sachs think that IPH could be an ASX dividend share to buy. It is an intellectual property solutions company with operations across the world.

The broker is feeling positive about the company due to its belief that IPH is "well-placed to deliver consistent and defensive earnings with modest overall organic growth."

It is expecting this to support the payment of fully franked dividends per share of 34 cents in FY 2024 and then 37 cents in FY 2025. Based on the current IPH share price of $6.16, this represents dividend 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)

Goldman Sachs is also feeling bullish about Rio Tinto. It is of course one of the world's largest miners with operations across several commodities such as copper, iron ore, and lithium.

The broker likes the company due to its "compelling relative valuation" and its expectation of "strong production growth in 2024 & 2025."

Goldman expects this to underpin fully franked dividends per share of US$4.29 (A$6.44) in FY 2024 and then US$4.55 (A$6.84) in FY 2025. Based on the latest Rio Tinto share price of $119.67, this will mean yields of approximately 5.4% and 5.7%, respectively.

The broker currently has a buy rating and $138.90 price target on the miner's shares.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend shares that could be a buy for income investors is youth fashion retailer Universal Store.

Morgans is positive on the company and believes it is well-placed for growth. It notes that its "growth opportunities are in place" and that "customers continue to respond well to the Universal Store banner."

As for income, the broker is forecasting fully franked dividends per share of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on its current share price of $5.20, this will mean yields of 5% and 5.6%, respectively.

Morgans has an add rating and $6.50 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Universal Store. 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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