There are a lot of options for Australian income investors to choose from on the local share market.
To narrow things down, let's take a look at a few that analysts rates as buys right now and expect 5%+ dividend yields.
Here's what they are recommending:
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Accent Group Ltd (ASX: AX1)
The team at Bell Potter remains very positive on Accent Group and believes it could be a top ASX dividend share to buy.
The broker thinks that investors should stick with the HypeDC, Platypus, Style Runner, and The Athlete's Foot owner. Especially given its belief that consumer spending will improve as interest rates fall. It also believes the rollout of the Sports Direct brand in Australia will be a key driver of growth in the future.
Bell Potter recently put a buy rating and $1.90 price target on its shares.
As for income, the broker is forecasting 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.
HomeCo Daily Needs REIT (ASX: HDN)
Morgans thinks that HomeCo Daily Needs REIT could be a top pick for income investors.
It is a real estate investment trust with a mandate to invest in convenience-based assets across the target sub-sectors of Neighbourhood Retail, Large Format Retail and Health & Services.
The broker currently has an accumulate rating and $1.33 price target on its shares.
In respect to payouts, Morgans believes the company will pay 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 $1.27, this would mean dividend yields of 6.8% and 6.9%, respectively.
Treasury Wine Estates Ltd (ASX: TWE)
Morgans is also positive on Treasury Wine. It is the wine giant behind popular brands such as Penfolds, Wolf Blass, and 19 Crimes.
The broker has a buy rating and $10.25 price target on its shares. It highlights that "while not without risk given industry and macro headwinds, TWE's trading multiples look far too cheap (FY25/26 PE of only 13.6/12.6x) and we maintain a BUY rating."
In respect to income, Morgans is forecasting partially franked dividends per share of 39.5 cents in FY 2025 and then 45 cents in FY 2026. Based on its current share price of $7.73, this would mean dividend yields of 5.1% and 5.8%, respectively.
