Beat falling interest rates with these ASX dividend stocks

Analysts expect these shares to offer good dividend yields in the near term.

| More on:
A man in a suit looks serious while discussing business dealings with a couple as they sit around a computer at a desk in a bank home lending scenario.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Thankfully for income investors in this low interest rate environment, there are plenty of ASX dividend stocks to choose from on the local share market.

But which ones could be buys right now?

Let's take a look at two that brokers think investors should be snapping up before it's too late. They are as follows:

APA Group (ASX: APA)

The first ASX dividend stock for income investors to look at 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. At the last count, these assets were valued at $27 billion.

Macquarie is positive on the company and believes it is positioned to pay a big dividend again in FY 2026 and FY 2027. It said:

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.

In respect to income, 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 $8.82, this would mean dividend yields of 6.6% and 6.7%, respectively.

The broker has an outperform rating and $9.23 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Morgans is a fan of this youth fashion retailer and thinks its shares could offer big returns for investors over the next 12 months.

Although its performance in FY 2025 was a touch below expectations, it was happy to overlook this due to its strong start to the new financial year. It said:

UNI's FY25 result was slightly below expectations driven by higher costs which offset stronger than expected gross margins. UNI's execution in a tough market has been exemplary, with LFL Universal Store (US) sales up 13%. The strong sales momentum has continued into the start of FY26, despite significantly harder comps, double digit LFL sales in US and Perfect Stranger (PS). We have increased our FY26/27 EBIT forecasts by 1.7%/1.8% respectively driven by higher sales and gross margins, somewhat offset by higher costs.

In respect to income, the broker is forecasting fully franked dividends per share of 41 cents in FY 2026 and 45 cents in FY 2027. Based on its current share price of $8.46, this would mean dividend yields of 4.8% and 5.3%, respectively.

Morgans has a buy rating and $10.80 price target on the ASX dividend stock.

Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
Dividend Investing

An ASX dividend stalwart every Australian should consider buying

This business offers both a good yield and payout growth.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

5 ASX dividend shares to buy for an income boost

Let's see why these shares could be top picks for income investors right now.

Read more »

Increasing stack of blue chips with a rising red arrow.
Blue Chip Shares

2 ASX blue-chip shares offering big dividend yields

I’m backing these two businesses as appealing dividend stocks.

Read more »

A happy, smiling man stretches out among yellow daisies in the green grass, dreaming of success.
Share Market News

How I'd invest monthly savings to generate over $50,000 passive income

This is how modest monthly investing could turn into serious passive income.

Read more »

Woman on a swing at a beach, symbolising passive income.
Dividend Investing

Passive income: How to earn safe dividends with just $20,000

The best dividend stocks tend to share these traits...

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

Own VTS ETF? It's a great day for you!

This exchange-traded fund seeks to mirror the performance of the entire US stock market.

Read more »

A man looks at his laptop waiting in anticipation.
Dividend Investing

A 3.5% ASX dividend stock paying cash every month

Some monthly divided stocks are more equal than others.

Read more »

A man smiles as he holds bank notes in front of a laptop.
Dividend Investing

3 of the best ASX dividend stocks to buy now

Let's see which dividend stocks analysts are tipping as buys.

Read more »