There are a lot of ASX dividend stocks for income investors to choose from on the Australian share market.
Three that analysts think could be top picks right now are listed below. Here's what they are recommending to clients:
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National Storage REIT (ASX: NSR)
The first ASX dividend stock that is being tipped as a buy is National Storage.
It is the largest self-storage provider in Australia and New Zealand. At the last count, the company was providing tailored storage solutions to almost 100,000 residential and commercial customers from over 260 centres.
Citi thinks the company is well-placed for growth given the positive medium term outlook for the self-storage industry.
In light of this, the broker is forecasting dividends 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 $2.42, this equates to dividend yields of 4.7% and 4.9%, respectively, for income investors.
Citi currently has a buy rating and $2.70 price target on its shares.
Telstra Group Ltd (ASX: TLS)
Another ASX dividend stock that has been given a buy rating is Australia's largest telco operator, Telstra.
Macquarie is positive on the company due to a number of reasons. One reason is that Telstra has "multiple cost-out levers & an ability to sustain mobile ARPUs."
In addition, it highlights that "despite execution risks from software-defined networking, ROIC growth and focus on the core competitive advantage in network and connectivity signals operating leverage and momentum."
The broker expects this to underpin fully franked dividends of 19.9 cents per share in FY 2025 and then 22 cents per share in FY 2026. Based on its current share price of $4.88, this equates to dividend yields of 4.1% and 4.5%, respectively.
Macquarie has an outperform rating and $5.28 price target on its shares.
Woolworths Group Ltd (ASX: WOW)
Over at Goldman Sachs, its analysts think that Woolworths could be an ASX dividend stock to buy.
It is one of Australia's big two supermarket operators. It also owns Big W, a growing pet care business, and a number of other complementary businesses.
Goldman Sachs likes Woolies due to its "strategic advantage in omni-channel and digital assets."
It expects this to underpin 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 $31.81, this will mean dividend yields of 2.6% and 3.4%, respectively.
Goldman has a buy rating and $36.50 price target on its shares.
