There are lots of ASX dividend shares to choose from on the Australian share market.
To narrow things down for income investors, let's take a quick look at two that brokers are tipping as buys today.
Here's what they are recommending to clients:
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APA Group (ASX: APA)
The first ASX dividend share that has been named as a buy is APA Group.
It is an energy infrastructure giant that owns a portfolio of gas pipelines, electricity grids, solar farms and wind assets across Australia.
The team at Macquarie is a fan of the company and believes its shares are attractive priced. It also thinks that its high dividend yield is sustainable. The broker said:
Outperform. APA's FY1 EV/EBITDA of ~11.6x looks attractive vs an historical range of 11.8-13.3x. The yield of ~6.7% pa is sustainable, with growing franking in coming years. Core earnings momentum should build with cost reductions and as new investment becomes income-generating.
As for dividends, Macquarie is forecasting partially franked dividends per share of 58 cents in FY 2026 and then 59 cents in FY 2027. Based on its current share price of $8.85, this would mean dividend yields of 6.55% and 6.65%, respectively.
The broker has an outperform rating and $9.23 price target on its shares.
Universal Store Holdings Ltd (ASX: UNI)
Another ASX dividend share that has been given the thumbs up by brokers is Universal Store.
It is the youth fashion retailer behind the Universal Store, Thrills, and Perfect Stranger brands.
Bell Potter was impressed with its full year results and believes it demonstrates why its shares deserve to trade at premium. It said:
While UNI trades at a ~19x P/E on a 1-year forward basis post the strong re-rate in the name over the past year, we continue to view distinctive growth traits supporting consistent outperformance in a challenging category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution. We see catalysts ahead including broader tailwinds associated with interest rate cuts, potential inclusion in the S&P/ASX 300 index at the next rebalance in September justifying the multiple. Maintain BUY.
In respect to income, the broker is forecasting fully franked dividends of 36.8 cents in FY 2026 and then 41.1 cents in FY 2027. Based on its current share price of $9.33, this represents dividend yields of 4% and 4.4%, respectively.
Bell Potter has a buy rating and $10.50 price target on its shares.
