Buy these ASX dividend shares for 5% to 7% yields

Brokers think these shares could be top picks for passive income investors.

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There are lots of ASX dividend shares to choose from on the Australian share market.

So many, it can be hard to decide which ones to buy above others.

To narrow things down, let's take a look at three that analysts have named as buys and tipped to offer above-average dividend yields. They are as follows:

Accent Group Ltd (ASX: AX1)

Accent Group could be an ASX dividend share to buy this month.

The footwear-focused retailer, which owns and operates leading brands like The Athlete's Foot, Hype DC, and Platypus, has fallen heavily this year, which Bell Potter thinks has created a buying opportunity.

Especially given how lower interest rates are expected to boost consumer spending. In addition, the company has announced a deal to roll out the Sports Direct brand across the ANZ region.

Bell Potter believes Accent will pay fully franked dividends of 7.4 cents per share in FY 2025 and then 9.5 cents per share in FY 2026. Based on its current share price of $1.49, this represents dividend yields of 5% and 6.4%, respectively.

Bell Potter has a buy rating and $1.90 price target on its shares.

Dexus Convenience Retail REIT (ASX: DXC)

Bell Potter is also a bullish on the Dexus Convenience Retail REIT and thinks it could be a good ASX dividend share to buy.

The Dexus Convenience Retail REIT owns a portfolio of Australian service stations and convenience retail assets. It notes that these assets are leased to high-quality tenants on attractive, long-term leases. This provides investors with sustainable and stable income and the potential for both income and capital growth through annual rental increases.

Bell Potter is forecasting dividends of 20.6 cents per share in FY 2025 and then 20.9 cents per share in FY 2026. Based on its current share price of $2.94, this implies dividend yields of 7% and 7.1%, respectively.

The broker has a buy rating and $3.35 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

A third ASX dividend share that could be a buy this month is HomeCo Daily Needs REIT.

It is a real estate investment trust with a focus on neighbourhood retail, large format retail, and health & services. HomeCo Daily Needs REIT counts many blue chips as tenants, including Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES).

Morgans is positive on the company. It believes that falling interest rates will give it a boost and expects this to underpin dividends per share of 8.6 cents in FY 2025 and then 8.8 cents in FY 2026. Based on its current share price of $1.23, this would mean dividend yields of 7% and 7.15%, respectively.

The broker has an accumulate rating and $1.33 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Accent Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Accent Group, HomeCo Daily Needs REIT, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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