If you're looking to generate passive income from the share market, then read on.
That's because listed below are three ASX dividend shares that analysts think could be top picks for income investors right now.
Here's what they are forecasting from these buy-rated names in the near term:
Jumbo Interactive Ltd (ASX: JIN)
The first ASX dividend share that could be a buy for income investors is Jumbo Interactive.
It is the online lottery ticket seller and lottery platform provider behind the Oz Lotteries app and the Powered by Jumbo platform.
Macquarie thinks that it could be a top pick right now. The broker points out that Jumbo's shares have "materially de-rated since the 1H25 result, impacted by market-share losses within Australian lottery retailing." This has left them "trading at a 45% P/E discount to the ASX 300 Industrials, its widest since 2017."
As for passive income, the broker is forecasting fully franked dividends of 50.5 cents per share in FY 2025 and then 63 cents per share in FY 2026. Based on its current share price of $10.27, this would mean dividend yields of 4.9% and 6.1%, respectively.
Macquarie currently has an outperform rating and $13.90 price target on its shares.
Sonic Healthcare Ltd (ASX: SHL)
Another ASX dividend share that could be a buy according to analysts is Sonic Healthcare.
It is a global pathology and diagnostic imaging provider that operates in Australia, Europe, and the United States.
Bell Potter is positive on the company's outlook after a tough period. In fact, it believes that a return to consistent growth is on the cards "driven by right sizing the business, the impact of acquisitions in FY24 and normalising organic operations post COVID."
The broker expects this to support dividends per share of $1.07 in FY 2025 and then $1.09 in FY 2026. Based on its current share price of $28.19, this represents dividend yields of 3.8% and 3.9%, respectively.
Bell Potter currently has a buy rating and $33.70 price target on its shares.
Universal Store Holdings Ltd (ASX: UNI)
A third ASX dividend share that could be a buy for passive income is Universal Store.
It is a youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrils brands.
Bell Potter is feeling positive about its long term growth outlook and believes it is positioned to reward shareholders with growing dividends.
It is forecasting fully franked dividends of 34.6 cents per share and 36.6 cents per share, respectively. Based on its current share price of $8.12, this equates to dividend yields of 4.25% and 4.5%, respectively.
Bell Potter has a buy rating and $10.50 price target on its shares.
