With interest rates falling, now could be a good time to turn to ASX dividend stocks.
But which ones?
Listed below are three high yield shares that analysts rate as buys. Here's what you need to know about them:
Smartgroup Corporation Ltd (ASX: SIQ)
Smartgroup might fly under the radar, but it continues to impress on the income front.
The company provides salary packaging and novated leasing services, and thanks to its government and not-for-profit client base, its earnings are relatively stable — even in more uncertain times. Demand has also picked up following electric vehicle incentives, creating a new tailwind for growth.
Analysts at Bell Potter are positive on the company, pointing to its low valuation and reliable dividends. They highlight that it "looks well priced given a forward P/E of ~12x, a defensive client base, earnings tailwinds from the Electric Car Discount Bill, an ROE of ~30% and a strong balance sheet."
The broker has a buy rating and $10.15 price target on its shares.
As for dividends, it is forecasting fully franked payouts of 60.8 cents per share in FY 2025 and then 64.4 cents in FY 2026. Based on its current share price of $7.51, this implies dividend yields of 8.1% and 8.6%, respectively.
Super Retail Group Ltd (ASX: SUL)
Another ASX dividend stock that is tipped to provide big dividend yields is Super Retail. It is the owner of Rebel, Supercheap Auto, BCF, and Macpac brands.
Its extensive loyalty program and wide customer base have helped keep revenues ticking over, even as consumers become more cautious. This has caught the eye of analysts at Goldman Sachs, which have put a buy rating and $15.50 price target on its shares.
In respect to income, Goldman Sachs expects dividends of 64 cents per share in FY 2025 and then 66 cents in FY 2026. This represents dividend yields of 4.9% and 5.1%, respectively, based on its current share price of $13.02.
Universal Store Holdings Ltd (ASX: UNI)
A final ASX dividend stock that could be a buy according to analysts is Universal Store.
The youth fashion retailer continues to expand across the country, opening new stores and capturing market share along the way.
Macquarie rates Universal Store as a top pick in the small-to-mid-cap space and has an outperform rating and $9.80 price target on its shares.
As for income, the broker expects dividends of 33.8 cents per share in FY 2025 and then 39.5 cents in FY 2026, offering yields of 4.7% and 5.5% based on its current price of $7.20.
