There are a lot of options for income investors to choose from on the Australian share market.
But which ASX dividend shares could be buys this month? Let's take a look at three that could be worth considering according to analysts. They are as follows:
Dicker Data Ltd (ASX: DDR)
The first ASX dividend share that analysts are tipping as a buy is Dicker Data. It is a leading technology hardware, software, cloud, and cybersecurity distributor.
Morgan Stanley is positive on the company and believes its shares are being undervalued at current levels. The broker recently put an overweight rating and $10.30 price target. This implies potential upside of approximately 19% for investors.
In respect to income, the broker is forecasting fully franked dividends per share of 47.6 cents in FY 2025 and then 50.8 cents in FY 2026. Based on the latest Dicker Data share price of $8.67, this would mean dividend yields of 5.5% and 5.85%, respectively.
Regal Partners Ltd (ASX: RPL)
The team at Bell Potter thinks that this alternative investment company's shares are dirt cheap at current level.
Following a recent pullback, its analysts said that they "continue to see upside in the shares, noting that sentiment can change rapidly, and retain our BUY recommendation."
Bell Potter has a buy rating and $3.35 price target on this ASX dividend share. This suggests that upside of 73% is possible for investors buying at current prices.
The broker is also expecting some good dividend yields from its shares in the near term. It is forecasting fully franked dividends per share of 9.5 cents in FY 2025 and then 17.3 cents in FY 2026. Based on its current share price of $1.94, this equates to dividend yields of 4.9% and 8.9%, respectively.
Rio Tinto Ltd (ASX: RIO)
Goldman Sachs thinks that Rio Tinto could be an ASX dividend share to buy.
The broker likes the mining giant due to its attractive relative valuation, strong free cash flow, and attractive dividend yield. The latter two are being underpinned partly by its exposure to copper and aluminium.
Goldman highlights that Rio Tinto has an "FCF/dividend yield of ~6% in 2025E and ~7%/~6% in 2026E, driven by our bullish view on aluminium and copper (~45-50% of group EBITDA by 2026)."
The broker has a buy rating on Rio Tinto's shares with a price target of $140.80. This implies potential upside of 21% for investors over the next 12 months.
As for income, it is forecasting fully franked dividends of US$3.64 per share in FY 2025 and US$3.74 per share in FY 2026. Based on the current Rio Tinto share price of $115.90, this would mean dividend yields of approximately 4.9% and 5%, respectively.
