The share market is a great place to generate income. That's because there are countless ASX stocks that reward their shareholders with dividends every year.
Traditionally, the share market has an average dividend yield in the region of 4%. But you don't have to settle for that. Not when there are shares offering even better prospective yields.
Let's take a look at three ASX dividend stocks that analysts believe will provide investors with dividend yields of 5%+ in the near term. They are as follows:
Healthco Healthcare and Wellness REIT (ASX: HCW)
Healthco Healthcare and Wellness REIT could be an ASX dividend stock to buy according to analysts at Bell Potter.
It is a real estate investment trust with a focus on healthcare and wellness assets. The company notes that its diversified portfolio is underpinned by attractive megatrends and is targeting stable and growing distributions, long-term capital growth, and positive environmental and social impact.
Bell Potter believes the company is well-positioned to reward shareholders with big dividends in the coming years. It is forecasting dividends per share of 8.4 cents in FY 2025 and 8.7 cents FY 2026. Based on the current Healthco Healthcare and Wellness REIT share price of $1.22, this will mean yields of 6.9% and 7.1%, respectively.
Bell Potter has a buy rating and $1.50 price target on its shares.
IPH Ltd (ASX: IPH)
Another ASX dividend stock that could be a buy is IPH. It is an intellectual property solutions company with operations across the world.
Goldman Sachs is positive on the company. It notes that IPH "has a leading market share in ANZ and Singapore, and is seeking to expand further in other markets including Canada." In light of this, it feels that the company "is well-placed to deliver consistent and defensive earnings with modest overall organic growth."
The broker is expecting this to support the payment of fully franked dividends per share of 37 cents in FY 2025 and then 40 cents in FY 2026. Based on the current IPH share price of $6.34, this represents yields of 5.8% and 6.3%, respectively.
Goldman has a buy rating and $8.25 price target on IPH's shares.
Rural Funds Group (ASX: RFF)
A third ASX dividend stock that analysts believe could offer big dividend yields is Rural Funds.
It is a property company that owns a diversified portfolio of agricultural assets predominantly leased to corporate and institutional lessees. This includes almond and macadamia orchards, vineyards, water entitlements, cattle and cropping assets.
Bell Potter is also a fan of Rural Funds and feels that its shares are undervalued at current levels.
As for dividends, the broker is forecasting an 11.7 cents per share dividend in FY 2025 and then a 12.2 cents per share dividend in FY 2026. Based on the latest Rural Funds share price of $2.12, this will mean dividend yields of 5.5% and 5.75%, respectively.
Bell Potter has a buy rating and $2.50 price target on its shares.
