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

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

| More on:
Middle age caucasian man smiling confident drinking coffee at home.

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

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:


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.

More on Dividend Investing

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 »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

Buy Woolworths and these ASX 200 dividend shares

Analysts think that income investors should be buying these stocks.

Read more »

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

Buy these ASX dividend shares for passive income

Analysts think these shares could be a good source of passive income.

Read more »

Woman calculating dividends on calculator and working on a laptop.
Dividend Investing

Analysts say these ASX dividend stocks are top buys

Looking for income? Analysts are saying good things about these shares.

Read more »