BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) shares are popular options for income investors.
But with the dividend yields on both expected to be below average in the coming years, they may not necessarily be the best ASX dividend shares to buy right now.
So, if you are unsure about these blue chips, it could be worth checking out the two named below that brokers rate as buys. Here's what they are recommending:
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Accent Group Ltd (ASX: AX1)
The first ASX dividend share for income investors to consider buying is Accent Group. It is a leading footwear focused retailer that owns brands such as Hype DC, Platypus, Stylerunner, and The Athlete's Foot.
It has had a tough year due to weak consumer spending, which has weighed heavily on its performance. In fact, its shares are down 36% since the start of the year.
Bell Potter thinks that this could make it a good time to buy its shares. Especially given its view that the selling has been overdone and that falling interest rates should be supportive of an improvement in its performance in the near future.
Another positive is that Bell Potter continues to forecast attractive dividend yields in the near term from its shares. It is expecting 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 $1.52, this equates to dividend yields of 4.9% and 6.3%, respectively.
Bell Potter currently has a buy rating and $1.90 price target on its shares.
Harvey Norman Holdings Ltd (ASX: HVN)
Another ASX dividend share to consider instead of BHP or CBA shares is retail giant Harvey Norman.
Bell Potter is also positive on this one. It recently highlighted that it believes Harvey Norman's valuation is "compelling, particularly given its additional exposure to furniture and land portfolio relative to JBH and WES."
In addition, it is expecting the company 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."
The broker believes this will underpin the payout of 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 $5.65, this would mean dividend yields of 4.5% and 5%, respectively.
Bell Potter has a buy rating and $6.00 price target on its shares.
