There are a lot of ASX dividend shares to choose from on the Australian share market.
To narrow things down, let's take a look at three names that brokers are bullish on right now. They are as follows:
BHP Group Ltd (ASX: BHP)
The first ASX dividend share to get the thumbs up is BHP.
It is of course one of the world's largest miners with high-quality operations across the globe.
Goldman Sachs is a fan of the company. It likes BHP due largely to its exposure to copper. It highlights that its analysts "remain bullish on copper due to ongoing supply side challenges and increasing demand."
Goldman expects "BHP's copper EBITDA to increase by ~US$3bn to ~US$10bn by FY26E (~45% of group EBITDA)."
In respect to dividends, the broker is forecasting fully franked dividends per share of 102 US cents in FY 2025 and then 112 US cents in FY 2026. Based on the current BHP share price of $39.13, this equates to fully franked dividend yields of 4.15% and 4.55%, respectively.
Goldman has a buy rating and $47.30 price target on its shares.
IPH Ltd (ASX: IPH)
The team at Morgans thinks that IPH could be an ASX dividend share to buy.
IPH is a leading intellectual property services company that operates across the globe.
It highlights that "IPH's valuation is undemanding (~10.8x FY25F PE), however investor patience is required given the delivery of organic growth looks to be the catalyst for a re-rating."
In the meantime, some big dividend yields are expected by the broker. It is forecasting fully franked dividends of 35 cents per share in FY 2025 and then 36 cents per share in FY 2026. Based on the current IPH share price of $4.49, this will mean dividend yields of 7.8% and 8%, respectively.
Morgans has an add rating and $6.30 price target on its shares.
Rio Tinto Ltd (ASX: RIO)
Goldman Sachs also thinks that income investors should be buying Rio Tinto's shares.
Its analysts like the miner due to its attractive relative valuation, strong free cash flow, and good dividend yield. It notes that the latter two are being driven partly by its exposure to copper and aluminium.
Goldman highlights that Rio Tinto has a "FCF/dividend yield in 2025E (c. 5%/5% yield) & 2026E (c. 7%/6% yield) driven by our bullish view on aluminium and copper (~45-50% of group EBITDA by 2026E)."
This is expected to support fully franked dividends of US$4.30 per share in FY 2025 and US$4.31 per share in FY 2026. Based on the current Rio Tinto share price of $117.50, this would mean dividend yields of approximately 5.8% for both years.
Goldman Sachs has a buy rating on Rio Tinto with a price target of $143.50.
