There are a lot of ASX dividend shares to choose from on the Australian share market.
To narrow things down, let's take a look at two that brokers are tipping as buys right now. They are as follows:
Cedar Woods Properties Ltd (ASX: CWP)
The team at Bell Potter thinks that property developer Cedar Woods could be an ASX dividend share to buy.
The broker believes that the market is undervaluing its shares and that a re-rating could happen over the next 12 months. It said:
We think the market is applying a conservative multiple to CWP (-37% discount to ASX300 & -35% to basket of peers) and for the reasons outlined above think CWP's current PE ratio (11.2x FY26e) is too low. Notwithstanding this our sensitivity analysis suggests that even on current multiples CWP shares should trade above $8.30 in 12m.
We maintain our Buy recommendation and increase our FY25-FY27e EPS estimates by 0% to 3% reflecting (1) higher conviction in settlement timeframes, (2) increased longer term confidence due to acquisitions and (3) robust macro tailwinds. We increase our TP to $8.00 based on a 50 / 50 blend of our DCF and SOTP valuations.
As for income, Bell Potter is forecasting dividends per share of 28 cents in FY 2025 and then 32 cents in FY 2026. Based on its current share price of $7.09, this equates to dividend yields of 3.9% and 4.5%, respectively.
The broker has a buy rating and $8.00 price target on its shares.
Treasury Wine Estates Ltd (ASX: TWE)
Morgans thinks that this beaten down wine giant could be an ASX dividend share to buy now.
The broker thinks that the Penfolds owner's shares are just too cheap to ignore at current levels following a period of significant weakness. It said:
TWE has released its new divisional operating model (Penfolds, Treasury Americas and Treasury Collective) and a further update on its business performance. FY25 guidance was reiterated. In FY26, TWE is targeting further earnings growth, albeit more modest than its previous targets, particularly for Treasury Americas. An up to 5% share buyback was also announced.
We have revised our forecasts. While not without risk given industry and macro headwinds, TWE's trading multiples look far too cheap (FY25/26 PE of only 13.6/12.6x) and we maintain a BUY rating. However, we recognise the stock is lacking near-term catalysts and therefore patience is required given a material rerating may take time to eventuate.
Morgans is expecting dividends per share of 39.5 cents in FY 2025 and then 42.3 cents in FY 2026. Based on its current share price of $7.81, this would mean dividend yields of 5% and 5.4%, respectively.
Morgans has a buy rating and $10.25 price target on its shares.
