Analysts name 3 ASX dividend shares to buy in January

These shares have been tipped as buys for income investors.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you are looking to boost your income with some ASX dividend shares, then three listed below could be worth a closer look.

That's because these dividend shares have been named as buys and are expected to provide investors with good dividend yields in the near term. Here's what analysts are saying about them:

Smiling woman with her head and arm on a desk holding $100 notes, symbolising dividends.

Image source: Getty Images

Challenger Ltd (ASX: CGF)

The first ASX dividend share to consider buying is annuities company Challenger.

Goldman Sachs is bullish due to Challenger's "exposure to the growing superannuation market" and belief that "higher yields should drive a favorable sales environment for retail annuities."

It expects this to underpin fully franked dividends of 27 cents per share in FY 2025 and then 28 cents per share in FY 2026. Based on Challenger's current share price of $6.18, this would equate to attractive yields of 4.4% and 4.5%, respectively.

Goldman Sachs currently has a buy rating and $7.82 price target on its shares.

DEXUS Property Group (ASX: DXS)

Another ASX dividend share to look at is Dexus. It is one of Australia's leading fully integrated real estate groups.

It owns a real estate and infrastructure portfolio valued at $54.5 billion. The Dexus platform includes the Dexus investment portfolio and the funds management business. It directly and indirectly own $14.8 billion of office, industrial, retail, healthcare, infrastructure and alternatives.

UBS is a fan of the company and sees a lot of value in its shares at current levels.

As for dividends, the broker is forecasting dividends per share of 37 cents in FY 2025 and 38 cents in FY 2026. Based on the latest Dexus share price of $6.82, this will mean yields of 5.4% and 5.6%, respectively.

UBS has a buy rating and $8.86 price target on the company's shares.

National Storage REIT (ASX: NSR)

A third ASX dividend share for income investors to look at is National Storage.

It is one of the ANZ region's leading self-storage operators with over 250 centres that provide tailored storage solutions to 97,000+ residential and commercial customers.

Citi is bullish on the company's outlook and thinks it would be a great option for investors right now. Particularly given its development pipeline and recent acquisitions, which are expected to support growth in the coming years.

In respect to income, its analysts are forecasting dividends per share of 11.3 cents in FY 2025 and 11.9 cents in FY 2026. Based on the current National Storage share price of $2.38, this equates to yields of 4.75% and 5%, respectively.

Citi has a buy rating and $2.70 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A large clear wine glass on the left of the image filled with fifty dollar notes on a timber table with a wine cellar or cabinet with bottles in the background.
Dividend Investing

How many Fortescue shares do I need to buy for $10,000 a year in passive income?

Fortescue shares have a long track record of twice-yearly passive income payments.

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Dividend Investing

How much could a $500,000 ASX share portfolio pay in dividends?

A sizeable portfolio combined with reliable dividend shares can produce meaningful income.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Dividend Investing

Morgans names 2 ASX dividend shares to buy now

The broker is expecting some attractive dividend yields from these buy-rated shares.

Read more »

Close up of woman using calculator and laptop for calculating dividends.
Dividend Investing

1 cheap Australian dividend stock down 25% to buy and hold

Every so often a reliable business falls out of favour and the income potential starts to look attractive.

Read more »

A smiling woman with a handful of $100 notes, indicating strong dividend payments
Dividend Investing

26 ASX shares with ex-dividend dates next week

In order to receive a dividend, you must own the ASX share before its ex-dividend date.

Read more »

A group of businesspeople clapping.
Dividend Investing

My 3 best ASX dividend-focused stocks to buy in March

Dividend investors on the ASX have plenty of options, but some businesses stand out for their reliability.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

How many Qantas shares do I need to buy for a $10,000 annual passive income?

Qantas shares resumed their passive income payouts in 2025.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

Buy this ASX 200 stock for an 11% dividend yield in 2026 and 2027: Morgans

Morgans thinks a turnaround could be starting for this beaten down stock.

Read more »