Fortunately for income investors, the Australian share market is home to a large number of ASX dividend stocks.
So many, it can be hard to decide which ones to buy over others.
To narrow things down, let's take a look at three that brokers currently rate as buys. They are as follows:
Endeavour Group Ltd (ASX: EDV)
The first ASX dividend stock that brokers rate as a buy is Endeavour Group. It is the leader in the Australian alcohol retail market through its Dan Murphy's and BWS brands. The company also owns the ALH Hotels business, which has over 350 licensed venues across the country.
Morgan Stanley remains bullish on the company and expects some attractive dividend yields from its shares in the near term.
It is forecasting fully franked dividends of 19 cents per share in FY 2025 and then 21 cents per share in FY 2026. Based on the current Endeavour share price of $4.12, this will mean yields of 4.6% and 5.1%, respectively.
Morgan Stanley has an overweight rating and $5.30 price target on its shares.
HomeCo Daily Needs REIT (ASX: HDN)
Another ASX dividend stock that gets the thumbs up from brokers is HomeCo Daily Needs REIT.
It is a real estate investment trust with a focus on investing in convenience-based assets. This is across the target sub-sectors of neighbourhood retail, large format retail, and health & services. HomeCo Daily Needs REIT counts many blue chips as tenants. This includes Endeavour Group, Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES).
Morgans is positive on the company and believes that falling interest rates will give it a boost. It expects this to support dividends per share of 8.6 cents in both FY 2025 and FY 2026. Based on its current share price of $1.29, this would mean dividend yields of 6.7%.
The broker currently has an add rating and $1.33 price target on its shares.
Woodside Energy Group Ltd (ASX: WDS)
A final ASX dividend stock that brokers are positive on is energy giant Woodside.
Morgans believes that recent share price weakness has left it trading at an attractive level. It recently highlighted that "WDS' share price implies a near cycle-low oil price level."
The broker then adds that its analysts "maintain an ADD recommendation believing WDS offers attractive long-term value."
As for dividends, the broker is forecasting fully franked payouts of $1.58 per share in FY 2025 and $1.19 per share in FY 2026. Based on its current share price of $23.09, this will mean yields of 6.8% and 5.15%, respectively.
Morgans currently has an add rating and $30.10 price target on Woodside's shares.
