Brokers name 3 ASX dividend shares to buy

Analysts think income investors should be snapping up these shares.

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Are you hunting for some ASX dividend shares to add to your income portfolio next week?

If you are, then take a look at the three listed below that brokers rate as buys.

Here's what they are expecting from them in the near term:

Challenger Ltd (ASX: CGF)

Analysts at Goldman Sachs think that this annuities company could be an ASX dividend share to buy. The broker currently has a buy rating and $7.50 price target on its shares.

It likes "CGF because: 1) it has exposure to the growing superannuation market across Life and Funds Management; 2) higher yields should drive a favorable sales environment for retail annuities as well as an improvement in margins; 3) its annuity book growth looks well supported through a diversified distribution strategy."

As for income, the broker is forecasting fully franked dividends of 26 cents per share in FY 2024, 27 cents per share in FY 2025, and then 28 cents per share in FY 2026. Based on the current Challenger share price of $6.74, this will mean dividend yields of 3.85%, 4%, and 4.15%, respectively.

Dexus Industria REIT (ASX: DXI)

Another ASX dividend share that has been named as a buy is Dexus Industria. It is a real estate investment trust with a focus on industrial warehouses.

Morgans is a fan of the company. This is due to its belief that "DXI's industrial portfolio remains robust with the outlook positive for rental growth."

The broker expects this to support dividends per share of 16.4 cents in FY 2024 and then 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $3.02, this will mean dividend yields of 5.4% and 5.5%, respectively.

Morgans has an add rating and $3.18 price target on its shares.

Transurban Group (ASX: TCL)

A third ASX dividend share that could be a buy for income investors according to brokers is Transurban. It manages and develops urban toll road networks in Australia and the United States.

Citi is bullish due to its positive exposure to inflation. It has a buy rating and $15.50 price target on its shares.

Its analysts are also expecting some good yields from its shares in the near term. Citi 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 $12.55, this will mean yields of 5.1% 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 recommended Challenger. 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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