Buy these ASX dividend shares for 5% to 7% yields

Analysts think these high-yield shares could be top picks for income investors.

With interest rates falling again, the share market could be the place to be if you want to generate an income from your cash.

But which ASX dividend shares would be good options? Let's take a look at two that analysts are tipping as buys and expecting generous dividend yields from in the near term. They are as follows:

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

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Adairs Ltd (ASX: ADH)

The first ASX dividend share for investors to consider buying is Adairs.

It is an omni-channel retailer of furniture, bedding, and home goods operating through three key brands; Adairs, Mocka and Focus on Furniture.

The team at Bell Potter believes that Adairs is well-placed to benefit from tailwinds in the retail industry. It said:

We continue to see tailwinds for ADH led by the core Adairs brand and improvements from the ongoing store refresh/product initiatives together with some catalysts related to expansion in FoF from FY26 onwards. We maintain our BUY rating.

As for income, the broker is forecasting fully franked dividends per share of 12 cents in FY 2025 and then 13 cents in FY 2026. Based on its current share price of $2.33, this equates to dividend yields of 5.15% and 5.6%, respectively.

Bell Potter has a buy rating and $2.65 price target on Adairs' shares.

Dexus Convenience Retail REIT (ASX: DXC)

Dexus Convenience Retail REIT could be an ASX dividend share to buy. It is a real estate investment trust (REIT) that owns a high-quality portfolio of Australian service stations and convenience retail assets, primarily located along the country's eastern seaboard.

Bell Potter is also feeling positive about the company. It highlights that it has a high dividend yield and trades at a deep discount to its net tangible assets (NTA). This is despite its NTA starting to grow again. It said:

DXC remains one of our preferred ways to play externally managed REITs given its high distribution yield (c.7.1%), price discovery via asset sales (with >10% of the book recycled last 18m), yet trading at a -20% discount to NTA, despite NTA starting to regrow. With EV growth moderating last 6mths, combined with operator reinvestment into the sector (BP for ConvenienceX, Viva for OTR, i7 Holdings for 7/Eleven) and stabilising funding costs, we see a platform to grow from whilst being 'paid to wait' at attractive risk-adjusted pricing.

In respect to dividends, the broker is forecasting payouts of 20.6 cents per share in FY 2025 and then 21 cents per share in FY 2025. Based on its current share price of $2.88, this equates to dividend yields of 7.15% and 7.3%, respectively.

Bell Potter currently has a buy rating and $3.30 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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