Interest rates have been heading lower this year. And if the market is to be believed, there's more pain to come for income investors in the coming months and then again in 2026.
But don't worry, because the Australian share market is home to countless companies that reward their shareholders with dividends twice a year (or even more frequently).
To narrow things down for investors, I have picked out a couple of ASX dividend shares that were recently named as buys by top brokers.
Let's see what they are saying about them and what sort of dividend yields they are forecasting over the next couple of years. Here's what they are recommending as buys:
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Jumbo Interactive Ltd (ASX: JIN)
The first ASX dividend share that analysts are tipping as a buy for income investors is Jumbo Interactive.
It is the online lottery ticket seller behind the popular Oz Lotteries app. In addition, the company operates the Powered by Jumbo platform. This allows charities to use a white label platform to run their own lotteries.
The team at Macquarie thinks that Jumbo could be a top pick right now. The broker recently highlighted that its 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 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 thatoperates in Australia, Europe, and the United States.
Bell Potter believes that the company's post-Covid recovery is finally gathering momentum and that a return to consistent growth is on the cards. This is being "driven by right sizing the business, the impact of acquisitions in FY24 and normalising organic operations post COVID."
Its analysts believe this will support dividends per share of $1.07 in FY 2025 and then $1.09 in FY 2026. Based on its current share price of $27.64, this represents dividend yields of 3.9% and 4%, respectively.
Bell Potter currently has a buy rating and $33.70 price target on its shares.
