Income investors hunting new portfolio additions before the end of the year might want to check out the three ASX dividend shares named below.
That's because analysts are tipping them as cheap buys and forecasting them to provide great returns in 2025 and beyond.
Here's what they are expecting from these dividend shares:
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. This is due to its belief that it is well-placed to benefit from strong demand for industrial property. The broker also feels that its valuation is attractive and highlights its positive long term fundamentals as a reason to invest.
As for dividends, 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 $2.86, this represents dividend yields of 5.6% and 5.9%, respectively.
UBS currently has a buy rating and $3.80 price target on its shares. This would mean a 33% gain based on where its shares trade today.
IPH Ltd (ASX: IPH)
Another ASX dividend share to look at is IPH. It is an international intellectual property (IP) services company with a network of member firms working throughout ten IP jurisdictions and clients in more than 25 countries.
The latter includes a diverse client base of Fortune Global 500 companies and other multinationals, public sector research organisations, SMEs, and professional services firms.
Demand for IP services generally remains robust whatever is happening in the world. This means that IPH benefits from very defensive earnings. A testament to this is that the company has been able to lift its dividend each year for the past decade.
Goldman Sachs believes this trend can continue and is forecasting increases to a fully franked 36 cents per share in FY 2025 and then 39 cents per share in FY 2026. Based on the current IPH share price of $4.96, this represents yields of 7.25% and 7.9%, respectively.
The broker currently has a buy rating and $7.50 price target on its shares. This implies potential upside of 50% for investors.
Telstra Group Ltd (ASX: TLS)
A third and final ASX dividend share that is rated highly by analysts is Telstra. It is of course Australia's largest telecommunications company.
The team at Goldman Sachs is also feeling positive about the telco giant. Its analysts highlight that the "low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive." The broker also sees potential for Telstra "crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn."
As for income, Goldman is forecasting fully franked dividends of 19 cents per share in FY 2025 and then 20 cents per share in FY 2026. Based on the current Telstra share price of $4.00, this represents dividend yields of 4.75% and 5%, respectively.
The broker currently has a buy rating and $4.35 price target on its shares. This suggests that upside of 9% is possible from current levels.
