There are a lot of options for Australian income investors to choose from.
To narrow things down, let's take a look at a couple of ASX dividend shares that have recently been named as buys by analysts.
Here's what these brokers are recommending right now:
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Accent Group Ltd (ASX: AX1)
The first ASX dividend share that could be a buy according to analysts is Accent Group.
It is the footwear-focused retailer behind popular store brands including HypeDC, Platypus, The Athlete's Foot, Style Runner, and Sneaker Lab. In addition, Accent Group has a growing exposure to the youth fashion market with Glue Store and Nude Lucy. It has also just announced plans to launch the Sports Direct brand in the ANZ region.
Bell Potter thinks it would be a great pick for income investors at current levels. So much so, it has named the company as a key pick. It said:
We continue to view AX1 as a key pick in our retail sector coverage given their scale as Australia's market leader, growth adjacencies in both footwear/apparel from exclusive partnerships & TAF channel conversion, and growing vertical brand strategy led by Nude Lucy.
In respect to dividends, the broker is forecasting fully franked payouts of 13.7 cents per share in FY 2025 and then 15.6 cents per share in FY 2026. Based on its current share price of $1.78, this would mean dividend yields of 7.7% and 8.75%, respectively.
Bell Potter has a buy rating and $2.75 price target on Accent's shares.
Steadfast Group Ltd (ASX: SDF)
Another ASX dividend share that gets the thumbs up from analysts is Steadfast. It is a group of insurance brokers providing commercial insurance solutions for SME clients. The company also operates the SDF network of brokers.
Goldman Sachs is positive on the company. This is due partly to its strong position in the market, as well as the favourable operating environment. It said:
We like SDF because of the industry structure favouring insurance brokers. 1) Premium rate environment remains supportive of organic growth trends (albeit moderating); 2) Little to no exposure to underwriting risk with revenues largely dependent on premiums written; 3) An opportunity to acquire EPS accretively with unlisted acquisitions at multiples accretive to earnings (including offshore); 4) A defensive business model which is relatively resilient to economic activity; 5) Valuation appeal compared to global peers.
As for income, Goldman is forecasting fully franked dividends per share of 20 cents in FY 2025 and then 22 cents in FY 2026. Based on its current share price of $5.67, this would mean dividend yields of 3.5% and 3.9%, respectively.
Goldman has a buy rating and $6.50 price target on its shares.
