There are a lot of options for income investors to choose from on the Australian share market.
But which would be smart picks for a $5,000 investment right now? Let's take a look at three that could be worth considering according to analysts. They are as follows:
APA Group (ASX: APA)
There are few dividend shares in Australia (and even the world!) that have a record like APA Group.
The energy infrastructure company is on track to increase its dividend for a whopping 20 years in a row.
Macquarie is positive on the company and believes this positive run will continue. The broker is forecasting dividend increases to 57 cents per share in FY 2025 and then 57.5 cents per share in FY 2026. Based on the current APA Group share price of $7.12, this equates to 8% and 8.1% dividend yields, respectively.
The broker also sees plenty of upside for its shares. It has an outperform rating and $8.23 price target on them.
Coles Group Ltd (ASX: COL)
Another high quality ASX dividend share that could be a great option for a $5,000 investment is supermarket giant Coles.
That's the view of analysts at Bell Potter, which believe the company would be a great option right now. The broker highlights that it sees "COL as providing an attractive earnings growth profile through to FY27e on an underlying basis, with high levels of cash generation supporting growth in dividends."
Speaking of which, the broker has pencilled in fully franked dividends per share of 68 cents in FY 2025 and then 78 cents in FY 2026. Based on its current share price of $18.16, this equates to yields of 3.75% and 4.3%, respectively.
Bell Potter has a buy rating and $21.55 price target on its shares.
Endeavour Group Ltd (ASX: EDV)
Finally, Endeavour Group could be an ASX dividend share to buy now.
It is the leader in the Australian alcohol retail market through brands such as Dan Murphy's and BWS. In addition, the company owns the ALH Hotels business, which has over 350 licensed venues across Australia.
Goldman Sachs likes Endeavour due to its market leadership position and the defensive nature of the alcohol retail market. It expects this to underpin fully franked dividends of 22 cents per share in FY 2025 and then 24 cents per share in FY 2026. Based on the current Endeavour share price of $4.76, this will mean dividend yields of 4.6% and 5%, respectively.
Goldman currently has a buy rating and $6.20 price target on its shares.
