If you are on the lookout for a source of passive income, then the ASX dividend shares in this article could be worth considering.
That's because they have been named as buys and tipped to provide investors with some very generous dividend yields in the near term. Here's what you need to know about them:
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Eagers Automotive Ltd (ASX: APE)
Eagers Automotive is being tipped as a high-yield ASX dividend share to buy.
It is a leading auto retailer with over 250 locations across Australia and New Zealand.
Bell Potter is positive on the company. The broker likes it due to its market leadership position. It highlights that "Eagers is the dominant player in the automotive retail market in Australia with >10% market share."
It expects this to support fully franked dividends of 66.5 cents per share in FY 2024 and then 73 cents per share in FY 2025. Based on its current share price of $12.29, this represents dividend yields of 5.4% and 5.9%, respectively.
Bell Potter has a buy rating and $13.00 price target on its shares.
IPH Ltd (ASX: IPH)
Goldman Sachs thinks that IPH could be a high-yield ASX dividend share to buy.
It is an intellectual property (IP) services company with a network of member firms working throughout ten IP jurisdictions.
Goldman likes the company due to its defensive earnings and organic growth potential. It highlights that "IPH is well-placed to deliver consistent and defensive earnings with modest overall organic growth."
As for passive income, the broker is forecasting partially 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 $4.87 this represents dividend yields of 7.4% and 8%, respectively.
Goldman has a buy rating and $7.50 price target on its shares.
HomeCo Daily Needs REIT (ASX: HDN)
Finally, a third high-yield ASX dividend share that could be a good option for passive income is HomeCo Daily Needs.
It is a property company with a focus on neighbourhood retail, large format retail, and health and services.
Morgans likes the company due to its shift in focus from large format retail to daily needs. It also highlights that its "portfolio has resilient cashflows, with the majority of tenants being national. Sites are in strategic locations with strong population growth."
In respect to income, Morgans is forecasting dividends per share of 8.5 cents in FY 2025 and then 8.7 cents in FY 2026. Based on the current HomeCo Daily Needs share price of $1.14, this will mean yields of 7.4% and 7.6%, respectively.
The broker currently has an add rating and $1.36 price target on its shares.
