Why these ASX dividend shares could be top picks for income investors

Analysts think that income investors should be buying these shares this month.

| More on:
Middle age caucasian man smiling confident drinking coffee at home.

Image source: Getty Images

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 you might want to consider the three listed below.

These shares have been named as buys and are expected to provide investors with attractive dividend yields in the near term.

Here's what you need to know about them:

Endeavour Group Ltd (ASX: EDV)

Endeavour Group could be an ASX dividend share to buy according to analysts at Goldman Sachs.

It is the leader in the Australian alcohol retail market through its popular store brands Dan Murphy's and BWS. In addition, the company owns the ALH Hotels business, which has over 350 licensed venues across the country.

The team at Goldman Sachs thinks Endeavour would be a top option due to its market leadership position in a defensive market.

It is expecting this to underpin fully franked dividends of 20 cents per share in FY 2025 and then 22 cents per share in FY 2026. Based on the current Endeavour share price of $4.09, this will mean dividend yields of 4.9% and 5.4%, respectively.

Goldman has a buy rating and $5.50 price target on its shares.

National Storage REIT (ASX: NSR)

Another ASX dividend share that could be a buy is National Storage.

It is the largest self-storage provider in Australia and New Zealand, with over 250 locations providing tailored storage solutions to over 97,000 residential and commercial customers.

The team at Citi has been pleased with the company's performance in recent times and believes it is well-positioned to grow its dividend.

The broker is forecasting dividends per share of 11.3 cents in FY 2025 and then 11.9 cents in FY 2026.  Based on its current share price of $2.37, equates to dividend yields of 4.8% and 5%, respectively, for income investors.

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

Stockland Corporation Ltd (ASX: SGP)

Finally, Morgan Stanley thinks that Stockland could be an ASX dividend share to buy right now.

It is one of Australia's largest diversified property companies with a specialty in residential communities, land lease communities, town centres, logistics, and office real estate.

The broker recently named Stockland as its preferred exposure to the residential market and sees it as a top pick for when interest rates fall.

In respect to income, the broker is forecasting dividends per share of 25.4 cents in FY 2025 and then 29.1 cents in FY 2026. Based on the current Stockland share price of $4.85, this represents dividend yields of 5.2% and 6%, respectively.

Morgan Stanley has an overweight rating and $6.35 price target on Stockland's shares.

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Endeavour Group. 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 no position in any of the stocks mentioned. 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 golden egg with dividend cash flying out of it
Dividend Investing

The 8% dividend stock that pays cash every month

An 8% yield paid out monthly is a tempting prospect.

Read more »

Coal Miner in the tunnels pushing a cart with tools
Dividend Investing

ASX 200 mining stock down 20% with 8% yield: is it a buy?

This ASX share could reward investors generously, and not just in dividends.

Read more »

Smiling couple sitting on a couch with laptops fist pump each other.
Dividend Investing

Where to invest $20,000 in ASX dividend shares

These dividend shares could be top picks for income investors this month.

Read more »

A young man sits at his desk reading a piece of paper with a laptop open.
Dividend Investing

1 ASX dividend stock down 24% I'd buy right now

This business is down significantly and it could offer pleasing payouts.

Read more »

A padlock wrapped around a wad of Australian $20 and $50 notes, indicating money locked up.
Dividend Investing

An ASX dividend stalwart every Australian should consider buying

This business has numerous positives, making it a buy.

Read more »

a large pile of cash made up of bundled $100 notes is piled against a plain background.
Dividend Investing

Investors can target $1,240 a year in dividend income from $20,000 in this ultra-high-yielding ASX 200 gem – here's how

This business can provide significant passive income.

Read more »

A businessman compares the growth trajectory of property versus shares.
Growth Shares

2 ASX giants to buy for decades of growth and dividends

Income or growth? Why not have both!

Read more »

a man in a shirt and tie holds his chin in thoughtful contemplation and looks skywards as if thinking about something while a graphic of a road with many ups and downs unfurls behind him.
Dividend Investing

Down 8%, this passive income stock offers a 4.6% dividend yield!

Despite a stagnant share price, this stock's payouts have never been higher.

Read more »