Buy Woolworths and these ASX dividend shares

Analysts are tipping the supermarket giant and these shares as buys. But why?

Fortunately for income investors, there are a lot of ASX dividend shares to choose from on the Australian share market.

But which ones could be buys this month? Let's take a look at three that analysts rate as buys. They are as follows:

Ecstatic woman looking at her phone outside with her fist pumped.

Image source: Getty Images

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent Group. It is the footwear focused retailer behind store brands such as HypeDC, Platypus, Style Runner, and The Athlete's Foot.

The team at Bell Potter remains very positive on the company. This is due to its market leadership, strategic growth initiatives, and ongoing expansion into apparel. The broker believes these will drive strong earnings growth in the coming years.

This is expected to underpin fully franked dividends of 13.7 cents per share in FY 2025 and then 15.6 cents per share in FY 2026. Based on its latest share price of $1.86, this equates to attractive dividend yields of 7.4% and 8.4%, respectively.

Bell Potter has a buy rating and $2.60 price target on its shares.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be a buy in May according to analysts is Rural Funds Group.

It is a diversified agricultural property company that owns a portfolio of high-quality assets across Australia. Among its portfolio are almond orchards, cattle farms, vineyards, and macadamia plantations.

Bell Potter is also very positive on Rural Funds and believes its shares are dirt cheap at current levels. The broker recently highlighted that "the 44% discount to market NAV is well above the historical average 5% premium since listing."

In respect to income, the broker is expecting dividends per share of 11.7 cents in FY 2025 and then 12.2 cents in FY 2026. Based on its current share price of $1.79, this will mean dividend yields of 6.5% and 6.8%, respectively.

Bell Potter has a buy rating and $2.45 price target on its shares.

Woolworths Group Ltd (ASX: WOW)

Finally, Woolworths could be an ASX dividend share to buy according to analysts.

It is Australia's largest retailer, operating the eponymous Woolworths supermarket chain, Big W, and a growing pet care business, among others. A demonstration of its size is that every week it aims to provide the best possible convenience, value, range and quality to the 24 million customers it serves across its network.

Goldman Sachs is a fan of the company and is tipping its shares as a buy. This is due partly to its belief that Woolworths has a "strategic advantage in omni-channel and digital assets."

As for dividends, it is forecasting fully franked dividends of 84 cents per share in FY 2025 and then $1.08 per share in FY 2026. Based on its current share price of $32.54, this will mean dividend yields of 2.6% and 3.3%, respectively.

Goldman Sachs has a buy rating and $36.50 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Accent Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Piles of coins.
Dividend Investing

Own VanEck ASX ETFs? Here's your next dividend

Show us the money!

Read more »

Accountant woman counting an Australian money and using calculator for calculating dividend yield.
Dividend Investing

These 2 ASX shares make up around 40% of my portfolio

These stocks are major parts of my portfolio.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

3 excellent ASX dividend shares with 5%+ yields

These shares are expected to offer generous dividend yields in 2027.

Read more »

Young businesswoman sitting in kitchen and working on laptop.
Dividend Investing

Origin Energy vs APA Group: Which ASX dividend share wins?

Which is the ASX's best energy stock for franked passive income: Origin Energy or APA Group? Here's my view.

Read more »

A young investor working on his ASX shares portfolio on his laptop.
Dividend Investing

Telstra vs Woodside: Which ASX dividend stock comes out on top?

See how Telstra and Woodside compare for franked dividends, value, and momentum—and which stock I’d buy for income right now.

Read more »

Woman looking at her computer and pondering something.
Dividend Investing

Insurance Australia Group vs Coles: Which ASX dividend comes out on top?

Should income investors pick Insurance Australia Group or Coles Group? Here’s how their dividends, franking, and value stack up.

Read more »

Two men in suits face off against each other in a boxing ring.
Test Only

Wesfarmers vs Woolworths: Which ASX dividend share looks better this month?

I compare Wesfarmers and Woolworths head-to-head to see which ASX dividend share is better value and income for investors right…

Read more »

A man points at a paper as he holds an alarm clock, indicating the ex-dividend date is approaching.
Dividend Investing

10 ASX shares with ex-dividend dates next week

Harvey Norman, MFF Capital Investments, WAM Capital, and other stocks go ex-div next week.

Read more »