If you're a retiree looking for reliable passive income, ASX dividend shares can be a great way to generate cash flow without selling down your investments.
Fortunately, some high-quality dividend shares currently offer attractive yields and fully franked payouts, making them ideal for retirees.
Here are three that analysts rate as buys right now.
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Endeavour Group Ltd (ASX: EDV)
Analysts at Goldman Sachs believe Endeavour Group could be a solid ASX dividend share for retirees to buy right now. This drinks giant owns well-known brands like Dan Murphy's and BWS and has a significant presence in the hotels (pubs) sector. Its defensive positioning in the market arguably makes it an appealing option for retirees seeking stable dividends.
Speaking of which, Goldman Sachs expects Endeavour to pay fully franked dividends of 19 cents per share in FY 2025 and then 22 cents per share in FY 2026. Based on the current Endeavour share price of $4.45, this equates to dividend yields of 4.3% and 4.9%, respectively.
And with a buy rating and $5.10 price target, Goldman sees upside potential in addition to a steady income stream.
Smartgroup Corporation Ltd (ASX: SIQ)
Another ASX dividend share tipped as a buy is Smartgroup. This company provides employee benefits, fleet management, and software solutions, making it a resilient business with defensive qualities.
Bell Potter is particularly bullish on Smartgroup due to its stable operations, positive industry tailwinds, and attractive valuation.
As for income, the broker is forecasting fully franked dividends of 53.3 cents per share in FY 2024 and then 59.7 cents per share in FY 2025. Based on its current share price of $7.81, these payouts represent generous dividend yields of 6.8% and 7.6%, respectively.
Bell Potter currently has a buy rating on Smartgroup's shares with a price target of $10.00.
Telstra Group Ltd (ASX: TLS)
Finally, Telstra is another ASX dividend share that Goldman Sachs believes is worth considering. As Australia's largest telco, Telstra benefits from its essential services and strong market position, which helps support consistent dividend payments.
Goldman Sachs forecasts fully franked dividends of 19 cents per share in FY 2025 and then 20 cents per share in FY 2026. Based on Telstra's current share price of $4.15, this equates to dividend yields of 4.6% and 4.8%, respectively.
The broker also feels Telstra's shares are good value right now. It has a buy rating and $4.50 price target on them.
