Dividends remain one of the best reasons to invest in the share market. Regular cash returns not only provide income but, when reinvested, can also help investors compound their wealth over time.
Fortunately, the ASX is home to plenty of quality ASX dividend shares that reward shareholders with attractive payouts.
And two that analysts currently rate as buys are named below. Here's what you need to know about them:
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Coles Group Ltd (ASX: COL)
Supermarket giant Coles could be an ASX dividend share to buy. It is one of the most reliable dividend payers on the market. Its defensive business model means it can generate consistent earnings through all parts of the economic cycle. People still need to buy groceries, regardless of whether times are good or bad.
This stability has allowed Coles to maintain regular dividends since listing, with a payout ratio that makes it appealing to income investors.
While margins remain tight in the retail sector, Coles continues to invest in supply chain efficiency and automation to support long-term profitability
Macquarie is a fan of Coles and has an outperform rating and $25.40 price target on its shares.
As for income, the broker is forecasting fully franked dividends of 77 cents per share in FY 2026 and then 84 cents per share in FY 2027. Based on its current share price of $24.04, this would mean dividend yields of 3.2% and 3.5%, respectively.
APA Group (ASX: APA)
Another ASX dividend share that could be a buy is APA Group. It is Australia's largest energy infrastructure business, operating thousands of kilometres of gas pipelines across the country.
Its assets are critical to keeping households and businesses supplied with energy, and most of its revenue comes from long-term, regulated contracts.
That reliability underpins APA's dividend, which consistently offers investors an above-average yield.
In addition, management has a strong record of delivering consistent cash returns while still investing in the future of the business. As Australia transitions its energy mix over the coming decades, APA's infrastructure is likely to remain vital, supporting both stability and income growth.
Macquarie is also feeling bullish about this ASX dividend share and has an outperform rating and $9.23 price target on its shares.
In respect to payouts, its analysts expect dividends per share of 58 cents in FY 2026 and 59 cents in FY 2027. This equates to generous dividend yields of 6.6% and 6.7%, respectively.
