There's no escaping the fact that interest rates are falling and look set to continue to fall over the next 12 months.
In light of this, it is getting harder for Australians to generate a suitable income from traditional income-generating assets.
But don't worry because the Australian share market is here to save the day with its ASX dividend shares.
And three shares that could be buys according to analysts are listed below. Here's what you need to know about them:
Centuria Industrial REIT (ASX: CIP)
Centuria Industrial REIT could be an ASX dividend share to buy according to analysts at Bell Potter.
It is one of Australia's largest pure-play industrial property trusts, offering exposure to a diversified portfolio of modern warehouses and logistics facilities.
Bell Potter is a fan of the company and sees value in its shares. It notes that "at a -16% discount to NTA for a scaled, east coast metro-centric portfolio with NTA starting to regrow and price discovery, we think CIP presents a strong risk-adjusted opportunity."
As for income, the broker expects dividends per share of 16.8 cents per in FY 2026 and then 17.3 cents per share in FY 2027. Based on its current share price of $3.35, this equates to dividend yields of 5% and 5.15%, respectively.
Bell Potter has a buy rating and $3.65 price target on its shares.
National Storage REIT (ASX: NSR)
Another ASX dividend share that analysts think could be a buy right now is National Storage.
It is the largest self-storage provider in Australia and New Zealand, providing tailored storage solutions to almost 100,000 residential and commercial customers from over 260 centres.
The team at Citi is positive on the self-storage industry. It believes trading conditions leave it well-placed to pay dividends of 11.3 cents per share in FY 2025 and FY 2026. Based on its current share price of $2.47, this equates to dividend yields of 4.7% and 4.9%, respectively.
Citi has a buy rating and $2.70 price target on its shares.
Universal Store Holdings Ltd (ASX: UNI)
Universal Store could also be an ASX dividend share to buy to combat falling interest rates.
It is a growing youth fashion retailer with brands including Universal Store, Thrills, and Perfect Stranger.
Macquarie is bullish and recently named the company as one of its top small-to-mid-cap picks. The broker notes that "UNI continues to win market share, with ongoing store roll-out supporting network sales growth."
Macquarie expects this to support 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 $8.85, this equates to dividend yields of 3.8% and 4.5%, respectively.
It currently has an outperform rating and $9.80 price target on the company's shares.
