Commonwealth Bank of Australia (ASX: CBA) shares are a popular option for income investors.
But with the banking giant's shares looking very expensive and a potential rotation out of the banks underway, now could be a bad time to invest.
In light of this, income investors might want to look at the ASX dividend shares in this article instead of Australia's largest bank. Let's see what brokers rate as buys right now:
Endeavour Group Ltd (ASX: EDV)
The first ASX dividend share that could be a top alternative for income investors is Endeavour Group.
It is the leader in the Australian alcohol retail market with an omnichannel network of more than 1,675 stores (BWS/Dan Murphy's), 344 hotels, and scalable digital platforms. Endeavour also has a significant loyalty program with 4.5 million active My Dan's members.
Morgan Stanley remains positive on the company and believes it is positioned to pay 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 $4.10, this will mean dividend yields of 4.6% and 5.1%, respectively.
Morgan Stanley has an overweight rating and $5.30 price target on its shares.
Harvey Norman Holdings Ltd (ASX: HVN)
Another ASX dividend share to consider instead of CBA shares is retail giant Harvey Norman.
The team at Bell Potter is bullish on the company. It recently stated that it believes its valuation is "compelling, particularly given its additional exposure to furniture and land portfolio relative to JBH and WES."
Another positive is that it expects it to be "a key beneficiary of RBA rate cuts as housing market returns to a more buoyant phase, aided by rising disposable income and house prices during the rate-cutting cycle and that should buoy consumer sentiment."
This is expected to underpin fully franked dividends of 25.4 cents per share in FY 2025 and then 28.1 cents per share in FY 2026. Based on its current share price of $5.38, this would mean dividend yields of 4.7% and 5.2%, respectively.
Bell Potter has a buy rating and $6.00 price target on its shares.
National Storage REIT (ASX: NSR)
Another 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, National Storage was providing tailored storage solutions to almost 100,000 residential and commercial customers from over 260 centres.
The team at Citi is positive on the self-storage industry and believes National Storage is well-placed to pay 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 $2.39, this equates to dividend yields of 4.7% and 4.9%, respectively.
Citi has a buy rating and $2.70 price target on its shares.
