The big four banks have delivered huge returns for investors over the past 12 months.
While this is great for the wealth of the nation, it seems quite unlikely that history will repeat itself over the next 12 months.
Especially with almost all major brokers believing that the big four banks are overvalued now.
With that in mind, instead of the banks, investors might want to look at the ASX dividend shares listed below.
As well as offering attractive dividend yields, analysts believe they could rise meaningfully from where they currently trade. Here's what you need to know:
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IPH Ltd (ASX: IPH)
Goldman Sachs thinks that IPH could be an ASX dividend share to buy this month. It is a leading intellectual property solutions company.
The broker likes IPH due to its defensive earnings and organic growth potential. It is expecting this to underpin 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 $5.99, this represents dividend yields of 6.2% and 6.7%, respectively.
Goldman currently has a buy rating and $8.25 price target on its shares. This implies potential upside of 38%.
Super Retail Group Ltd (ASX: SUL)
A second ASX dividend share that could be a good alternative to the banks for income investors is Super Retail. It is the retail company behind the popular BCF, Supercheap Auto, Macpac, and Rebel store brands.
Morgans is feeling positive about the company, especially following its solid full year results release last month.
In respect to income, Morgans now expects fully franked dividends per share of 97 cents in FY 2025 and then 103 cents in FY 2026. Based on its current share price of $17.60, this will mean yields of 5.5% and 5.9%, respectively.
Morgans has an add rating and $19.79 price target on its shares. This suggests that its shares could rise 13% from current levels.
Universal Store Holdings Ltd (ASX: UNI)
Morgans also thinks that Universal Store is an ASX dividend share to buy right now. It is the youth-focused fashion retailer behind the Universal Store, Perfect Stranger, Thrills, and Worship brands.
It is forecasting fully franked dividends per share of 33 cents in FY 2025 and 37 cents in FY 2026. Based on the current Universal Store share price of $6.70, this will mean yields of 4.8% and 5.4%, respectively.
Morgans has an add rating and $8.10 price target on its shares. This implies potential upside of 21% for investors.
