Due to their big dividends, BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares can be great options for income investors. But what if you don't want mining sector exposure for your portfolio?
Well, the good news is there are plenty of quality alternatives to the miners. For example, analysts say the three ASX dividend shares listed below are top options right now. They have been named as buys and are tipped to offer dividend yields that are comparable or even better than BHP and Rio Tinto. They are as follows:
Accent Group Ltd (ASX: AX1)
The first share to look at is Accent Group. It is a leisure footwear retailer with a growing store network across multiple brands including HypeDC, Stylerunner, and The Athlete's Foot.
Bell Potter is very positive on the company. Its analysts advised that they "remain constructive on AX1 given their scale as Australia's market leader, growth adjacencies in both footwear/apparel from exclusive partnerships & TAF channel conversion and growing vertical brand strategy led by Nude Lucy."
The broker expects this to underpin fully franked dividends per share of 13.9 cents in FY 2025 and then 15.8 cents in FY 2026. Based on the latest Accent share price of $2.31, this represents dividend yields of 6% and 6.8%, respectively.
Bell Potter has a buy rating and $2.50 price target on its shares.
Eagers Automotive Ltd (ASX: APE)
Bell Potter also thinks that Eagers Automotive could be an ASX dividend share to buy now. It is a leading automotive retail group which has been operating for over a century.
While the broker acknowledges that trading conditions aren't easy at present, it still thinks the market is underestimating the company's earnings potential.
It also believes some attractive dividend yields are on offer with its shares in the near term. The broker is forecasting fully franked dividends of 66.5 cents per share in FY 2024 and then 73 cents per share in FY 2025. Based on its current share price of $10.70, this represents dividend yields of 6.2% and 6.8%, respectively.
Bell Potter has a buy rating and $13.00 price target on its shares.
IPH Ltd (ASX: IPH)
Over at Goldman Sachs, its analysts think that IPH could be an ASX dividend share to buy. It is a leading intellectual property solutions company with operations across the globe.
Goldman likes IPH due to its defensive earnings and organic growth potential.
It believes this will support 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 $6.04, this represents dividend yields of 6.1% and 6.6%, respectively.
Goldman currently has a buy rating and $8.25 price target on its shares.
