When it comes to big returns, you don't just have to buy growth shares. Some ASX dividend shares have the potential to beat the market as well as provide income investors with a good dividend yield.
But which dividend shares could deliver on these? Let's see what analysts are saying about the three shares listed below:
Inghams Group Ltd (ASX: ING)
Morgans thinks that big returns could be coming from the shares of integrated poultry producer Inghams.
While the broker acknowledges that trading conditions have been tough, it still sees a compelling risk/reward on offer with its shares.
Morgans currently has an add rating and $3.66 price target on them. Based on its current share price of $3.09, this implies potential upside of 18% for investors over the next 12 months.
As for dividends, the broker is forecasting fully franked dividends of 19 cents per share in both FY 2025 and FY 2026. This equates to dividend yields of 6.15% for both years.
IPH Ltd (ASX: IPH)
IPH could be another ASX dividend share to buy for big returns over the next 12 months. It is an intellectual property (IP) services company with operations across the world.
Its shares have just dropped to a 52-week low, but Goldman Sachs remains very positive. Its analysts believe IPH "is well-placed to deliver consistent and defensive earnings with modest overall organic growth."
In light of this, the broker reaffirmed its buy rating and $7.50 price target on its shares this week. This implies potential upside of 48% for investors from current levels.
In addition, Goldman fully franked dividends of 36 cents per share in FY 2025 and then 39 cents per share in FY 2026. Based on the current IPH share price of $5.06, this represents dividend yields of 7.1% and 7.7%, respectively.
Universal Store Holdings Ltd (ASX: UNI)
Finally, analysts at Bell Potter think that Universal Store could be an ASX dividend share to buy for big returns. It is the youth fashion retailer behind the eponymous Universal Store brand and the Perfect Stranger and Thrills brands.
Bell Potter likes the company for a number of reasons. This includes "the store roll-out & brand growth strategy, margin expansion via private label product penetration (currently ~46%) and strong earnings trajectory."
The broker has put a buy rating and $8.85 price target on its shares, which implies potential upside of 12% for investors.
In respect to income, the broker is forecasting fully franked dividends per share of 31.4 cents in FY 2025 and then 36.8 cents in FY 2026. Based on the current Universal Store share price of $7.92, this will mean yields of 4% and 4.6%, respectively.
