There is no doubt that Commonwealth Bank of Australia (ASX: CBA) is a high-quality company.
But unfortunately, its sky-high valuation and slender dividend yield just don't make it a good option for income investors right now.
In light of this, they may be better off looking at the ASX dividend shares in this article instead. Let's see why analysts rate them as buys:
Dicker Data Ltd (ASX: DDR)
The first ASX dividend share that could be a buy is Dicker Data. It is a technology distributor that supplies software, hardware, cloud, and cybersecurity solutions across Australia.
UBS is positive on the company's outlook and sees its current valuation as attractive for investors.
It also expects some good dividend yields in the near term. It is forecasting fully franked dividends of 45 cents per share in FY 2025 and then 51 cents in FY 2026. Based on its current share price of $8.33, this equates to dividend yields of 5.4% and 6.1%, respectively.
UBS currently has a buy rating and $9.30 price target on its shares.
Telstra Group Ltd (ASX: TLS)
Another ASX dividend share to buy instead of CBA could be Telstra. It is Australia's largest telco, providing around 22.5 million retail mobile services and 3.4 million retail bundle and data services.
The team at Macquarie is very positive on its outlook. It highlights that it is expecting its new Connected Future 30 strategy to underpin "underlying ROIC expansion to 10% by FY30, driven by operating leverage. MSD cash EPS CAGR to FY30, with multiple cost-out options."
This is expected to support 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 $4.85, this would mean dividend yields of 4.1% and 4.5%, respectively.
Macquarie has an outperform rating and $5.28 price target on Telstra's shares.
Universal Store Holdings Ltd (ASX: UNI)
Universal Store could be a third ASX dividend share to buy according to analysts. It is a fast-growing apparel retailer with a focus on the youth fashion market. This is through its eponymous Universal Store brand, as well as the Thrills and Perfect Stranger brands.
Macquarie is a big fan, noting that "UNI continues to win market share, with ongoing store roll-out supporting network sales growth."
It expects this to support the payout of fully franked dividends of 33.8 cents per share in FY 2025 and then 39.5 cents per share in FY 2026. Based on its current share price of $8.03, this equates to dividend yields of 4.2% and 4.9%, respectively.
Macquarie has an outperform rating and $9.80 price target on the company's shares.
