Which ASX dividend shares could be top options for income investors right now?
Well, let's take a look at three stocks that analysts are currently tipping as buys. They are as follows:
Orora Ltd (ASX: ORA)
The first ASX dividend share that is being tipped as a buy is leading beverage packaging company Orora.
While it has been facing some major headwinds recently, Goldman Sachs remains positive. Particularly given the way the market is valuing its relatively new Saverglass business. It recently noted the "current market implied valuation of Saverglass provides a favourable risk-reward skew."
As for dividends, Goldman is expecting some good yields from its shares in the near term. It is forecasting dividends per share of 9 cents in FY 2025 and then 11 cents in FY 2026. Based on the current Orora share price of $2.44, this will mean dividend yields of 3.7% and 4.5%, respectively.
Goldman has a buy rating and $2.75 price target on its shares.
Rio Tinto Ltd (ASX: RIO)
Another ASX dividend share that could be a buy is mining giant Rio Tinto.
Goldman Sachs is also tipping it as a buy on valuation grounds and due to its production growth outlook.
In respect to the latter, it highlights that "RIO is a FCF and production growth story in our view, with forecast Cu Eq production growth of ~4-7% in 2025 & 2026 driven mostly by the ramp-up of the Oyu Tolgoi UG copper mine & a recovery at Escondida and Bingham, higher Pilbara Fe shipments with the ramp-up of new mines, and a rebound in aluminium production."
The broker expects this to underpin fully franked dividends of US$4.24 (A$6.26) per share in FY 2024 and then US$4.45 (A$6.57) per share in FY 2025. Based on its current share price of $111.02, this equates to dividend yields of 5.6% and 5.9%, respectively.
Goldman has a buy rating and $136.60 price target on its shares.
Universal Store Holdings Ltd (ASX: UNI)
A final ASX dividend share that analysts are tipping as a buy is Universal Store. It is the youth fashion retailer behind the Universal Store, Perfect Stranger, Thrills, and Worship brands.
Bell Potter is a fan of the retailer and responded very positively to its full year results this month. It notes that its "FY24 EBIT of $47.1m came in at the top end of the pre-guided range while the DPS was a material beat driven by a payout at the top of targeted dividend policy range."
The broker also remains positive on the future "given the company's store roll-out & brand growth strategy, gross margin expansion and FY25/26e earnings trajectory."
It expects this to position the company to pay fully franked dividends per share of 32.4 cents in FY 2025 and 37.2 cents in FY 2026. Based on the current Universal Store share price of $7.00, this will mean yields of 4.6% and 5.3%, respectively.
Bell Potter has a buy rating and $7.80 price target on its shares.
