While the big four banks are high quality ASX dividend shares, their valuations have become incredibly stretched this year.
As a result, the risk/reward on offer is not compelling at all right now. This is a shame because they are firm favourites of income investors.
But don't worry because there are plenty of alternatives out there for investors to choose from. Here are three that analysts rate as buys:
Centuria Industrial REIT (ASX: CIP)
The first ASX dividend share that could be a buy is Centuria Industrial. It is Australia's largest domestic pure play industrial property investment company.
The team at UBS is positive on Centuria Industrial and believes it is well-placed to benefit from strong demand for industrial property. It also highlights its cheap valuation and positive long term fundamentals as reasons to buy.
As for income, the broker is forecasting Centuria Industrial to pay dividends per share of 16 cents in FY 2025 and then 17 cents in FY 2026. Based on the current Centuria Industrial share price of $3.00, this represents dividend yields of 5.3% and 5.7%, respectively.
UBS has a buy rating and $3.80 price target on its shares.
QBE Insurance Group Ltd (ASX: QBE)
The team at Goldman Sachs remains bullish on this insurance giant and sees it as an ASX dividend share to buy right now.
There are a number of reasons why it thinks investors should be buying QBE's shares. This includes its exposure to the commercial rate cycle and its improving performance in North America. It highlights that "underlying trends look very positive" and that "North America on a pathway to improved profitability." The broker also notes that its "valuation [is] not demanding."
As for dividends, Goldman is forecasting dividends per share of 54 US cents (83.3 Australian cents) in FY 2024 and 57 US cents (87.9 Australian cents) in FY 2025. Based on the current QBE share price of $18.67, this equates to dividend yields of 4.5% and 4.7%, respectively.
Goldman has a buy rating and $20.00 price target on its shares.
Super Retail Group Ltd (ASX: SUL)
Finally, Morgans thinks that Super Retail could be an ASX dividend share to buy. It is the retailer behind popular retail brands BCF, MacPac, Supercheap Auto, and Rebel.
Its analysts believe that Super Retail's diversified portfolio offers greater resilience to macro trends than peers. So much so, the broker suspects that the company could continue to pay special dividends in the near term.
Morgans is expecting this to lead to the retailer paying 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 $14.68 this will mean yields of 6.6% and 7%, respectively.
The broker currently has an add rating and $19.79 price target on its shares.
