The Australian share market is a great place to generate passive income. Especially in the current low interest rate environment.
And with the Reserve Bank of Australia likely to takes rates even lower over the next 18 months, Australian dividend shares look set to remain one of the best options for income investors for some time to come.
With that in mind, let's now take a look at three shares that analysts think could be fantastic options today.
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Accent Group Ltd (ASX: AX1)
Bell Potter has named Accent Group as an Australian dividend share to buy. It is the footwear-focused retailer behind the HypeDC, Platypus, Style Runner, and The Athlete's Foot store brands.
While trading conditions have been tough in FY 2025, the broker believes that things will improve in the near term. Especially given its belief that consumer spending will improve as interest rates fall.
It also highlights the rollout of the Sports Direct brand in Australia as a potential key driver of growth in the coming years.
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 $1.48, this represents dividend yields of 5% and 6.4%, respectively.
Bell Potter has a buy rating and $1.90 price target on its shares.
Dicker Data Ltd (ASX: DDR)
Another Australian dividend share that could be a buy is Dicker Data. It is a technology distributor that supplies software, hardware, cloud, and cybersecurity solutions across Australia.
Morgan Stanley is positive on the company and believes it would be a good pick for income investors.
It is forecasting fully franked dividends of 47.6 cents per share in FY 2025 and then 50.8 cents in FY 2026. Based on its current share price of $9.00, this equates to dividend yields of 5.3% and 5.6%, respectively.
Morgan Stanley currently has an overweight rating and $10.30 price target on its shares.
Universal Store Holdings Ltd (ASX: UNI)
Finally, Universal Store could be another Australian dividend share to buy according to analysts.
Through its Universal Store, Thrills, and Perfect Stranger brands, it is a fast-growing apparel retailer with a focus on the youth fashion market.
The team at Macquarie is positive on the company and its outlook. It highlights that "UNI continues to win market share, with ongoing store roll-out supporting network sales growth."
The broker expects this to underpin fully franked dividends of 33.8 cents per share in FY 2025 and then 39.5 cents per share in FY 2026. Based on its current share price of $8.50, this equates to dividend yields of 4% and 4.65%, respectively.
Macquarie has an overweight rating and $9.80 price target on its shares.
