If you're an income investor with $2,000 to put into the market, then the three ASX dividend shares named below could be great picks according to analysts.
Here's why they could be among the smartest buys right now:
Harvey Norman Holdings Limited (ASX: HVN)
Analysts at Bell Potter are tipping retail giant Harvey Norman as an ASX dividend share to buy.
The broker is positive on the retailer due to its exposure to the artificial intelligence (AI) megatrend. Its analysts believe Harvey Norman stands to benefit greatly from an AI driven major upgrade/replacement cycle of devices that were purchased during the COVID-19 pandemic.
In addition, they "view HVN as supported by exclusive access from brands/chip manufacturers given large format stores globally which are attractive to global technology brands/suppliers when launching new products."
The broker expects this to support the payment of fully franked dividends of 25.9 cents per share in FY 2025 and then 28.5 cents per share in FY 2026. Based on the current Harvey Norman share price of $4.89, this equates to 5.3% and 5.8% dividend yields, respectively.
Bell Potter has a buy rating and $5.80 price target on its shares.
IPH Ltd (ASX: IPH)
Over at Goldman Sachs, its analysts think that IPH could be a smart ASX dividend share to buy.
It is an intellectual property (IP) services provider that the broker believes is "well-placed to deliver consistent and defensive earnings with modest overall organic growth."
In addition, it is worth noting that IPH has one of the best dividend track records on the Australian share market. The company has increased its dividend annually each year over the past decade.
Goldman expects this trend to continue and is forecasting fully franked dividends of 36 cents per share in FY 2025 and then 39 cents per share in FY 2026. Based on its current share price of $5.08, this equates to dividend yields of 7.1% and 7.7%, respectively.
The broker has a buy rating and $7.50 price target on its shares.
Rural Funds Group (ASX: RFF)
A third ASX dividend share that could be a smart buy is Rural Funds.
It is a property company with a collection of assets across a number of agricultural industries. This includes almond and macadamia orchards, premium vineyards, water entitlements, cropping and cattle farms, which are all leased to major industry players on long term contracts with rental increases built in.
Bell Potter is a big fan of the company and is forecasting dividends per share of 11.7 cents in FY 2025 and then 12.2 cents in FY 2026. Based on the current Rural Funds share price of $1.74, this will mean yields of 6.7% and 7%, respectively.
The broker has a buy rating and $2.50 price target on its shares.
