The Australian share market traditionally has an average dividend yield of approximately 4%.
While this is a great yield, you don't have to settle for that.
That's because there are a number of ASX dividend shares offering investors larger than average yields.
Three such examples are listed below. Here's why they are rated as buys:
Accent Group Ltd (ASX: AX1)
The first ASX dividend share that could be a top option for income investors this week is Accent Group.
While its name may not be a household name, many of its store brands are. Accent is a footwear focused retailer with over 800 stores across brands such as Sneaker Lab, Hype DC, Platypus, Stylerunner, and The Athlete's Foot.
Bell Potter likes the company and believes it is well-positioned for growth in the coming years. This is expected to support the payment of fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the latest Accent share price of $1.98, this represents dividend yields of 6.6% and 7.4%, respectively.
Bell Potter currently has a buy rating and $2.50 price target on its shares.
APA Group (ASX: APA)
Analysts at Macquarie think that APA Group could be an ASX dividend share to buy. It is an energy infrastructure business that owns, manages, and operates a $25 billion portfolio of gas, electricity, solar and wind assets.
The broker feels there are a number of projects in its pipeline, such as in the Pilbara and Port Hedland, that will be supportive of further earnings and dividend growth in the coming years.
In the meantime, Macquarie is forecasting dividends per share of 56 cents in FY 2024 and 57.5 cents in FY 2025. Based on the current APA Group share price of $7.96, this equates to 7% and 7.2% dividend yields, respectively.
The broker currently has an outperform rating and $9.40 price target on its shares.
Charter Hall Retail REIT (ASX: CQR)
Finally, another ASX dividend share that could offer income investors a larger than average dividend yield is the Charter Hall Retail REIT.
It is a property company that has a focus on supermarket anchored neighbourhood and sub-regional shopping centre markets.
Analysts at Citi are positive on the company due partly to its inflation-linked rental increases. It believes this will support dividends of 28 cents per share in both FY 2024 and FY 2025. Based on the current Charter Hall Retail REIT share price of $3.33, this will mean yields of 8.4%.
Citi has a buy rating and $4.00 price target on its shares.
