As expected, on Tuesday the Reserve Bank of Australia elected to cut the cash rate once again.
And with interest rates expected to go even lower over the course of the year, the outlook for income investors is quickly taking a turn for the worse.
But don't worry because there are plenty of ASX dividend shares out there that offer yields that are superior to what is available with term deposits and savings accounts.
With that in mind, let's look at three shares that brokers rate as buys right now. They are as follows:
National Storage REIT (ASX: NSR)
The first ASX dividend share that could be a buy is National Storage.
It is the largest self-storage provider in Australia and New Zealand. At the last count, the company had over 250 locations that were providing tailored storage solutions to over 97,000 residential and commercial customers.
Citi is positive on the company and currently has a buy rating and $2.70 price target on its shares.
In respect to dividends, the broker is forecasting payouts of 11.3 cents per share in FY 2025 and then 11.8 cents per share in FY 2026. Based on its current share price of $2.34, this equates to dividend yields of 4.8% and 5%, respectively, for income investors.
Stockland Corporation Ltd (ASX: SGP)
Over at Morgan Stanley, its analysts think that Stockland could be an ASX dividend share to buy.
It is one of Australia's largest diversified property companies with a specialty in residential communities, land lease communities, town centres, logistics, and office real estate.
Morgan Stanley thinks it could be a top option and has put an overweight rating and $6.50 price target on its shares.
As for income, the broker is forecasting dividends per share of 25.4 cents in FY 2025 and then 29.3 cents in FY 2026. Based on its current share price of $5.55, this would mean dividend yields of 4.6% and 5.3%, respectively.
Telstra Group Ltd (ASX: TLS)
A third ASX dividend share that could be a buy for income investors according to analysts is telco giant Telstra.
Goldman Sachs is positive on the company, especially after it announced price increases this week. It expects these increases to "drive an acceleration in mobile service revenue growth in FY26E."
In response, the broker has reaffirmed its buy rating on the company's shares with an improved price target of $4.90.
As for dividends, it continues to forecast fully franked dividends per share of 19 cents in FY 2025 and then 20 cents in FY 2026. Based on its current share price of $4.66, this would mean dividend yields of 4.1% and 4.3%, respectively.
