3 strong ASX dividend shares to buy and hold

Analysts think these shares are top investment options for income.

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Key points

  • An investment trust focused on service stations and convenience retail assets offers attractive dividend yields of 6.8% and 7% for FY 2026 and FY 2027, with analysts maintaining a positive outlook and a buy rating.
  • A real estate trust specialising in convenience-based retail centres is expected to maintain a dividend yield of 6.6% for the next two fiscal years, with analysts recommending it as an accumulate due to its stable portfolio.
  • A leading wine company, despite facing challenges, continues to show growth and offers dividend yields of 5.6% and 6.3% for FY 2026 and FY 2027, with recommendations from analysts to buy amid current share price weakness.

There are a lot of ASX dividend shares available to choose from on the local market. But which ones could be top buy and hold picks?

Listed below are three that analysts think income investors should be considering. Here's what they are recommending:

Dexus Convenience Retail REIT (ASX: DXC)

The first ASX dividend share that could be a buy is the Dexus Convenience Retail REIT.

It owns a portfolio of Australian service stations and convenience retail assets that are leased to high-quality tenants on attractive, long-term leases. This provides sustainable and stable income and the potential for both income and capital growth through annual rental increases.

Bell Potter is positive on the company and is forecasting some attractive dividend yields in the near term. It expects dividends of 20.9 cents per share in FY 2026 and then 21.6 cents per share in FY 2027. Based on its current share price of $3.07, this implies dividend yields of 6.8% and 7%, respectively.

The broker has a buy rating and $3.45 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that could be a buy is the HomeCo Daily Needs REIT.

It is a real estate investment trust that focuses on convenience-based retail centres. This includes supermarkets, pharmacies, medical clinics, and pet stores. These are assets with stable tenants and long leases.

With a portfolio designed to weather economic cycles, HomeCo Daily Needs REIT has rewarded its shareholders handsomely with big dividends in the past.

Pleasingly, UBS expects this trend to continue. It is forecasting dividends of 9 cents per share in FY 2026 and FY 2027. Based on its current share price of $1.36, this would mean dividend yields of 6.6% for both years.

Morgans has an accumulate rating and $1.33 price target on its shares.

Treasury Wine Estates Ltd (ASX: TWE)

A third ASX dividend share to look at is Treasury Wine.

It is one of the largest wine companies in the world, with a portfolio of premium brands such as Penfolds and Wolf Blass.

It has been going through a difficult period due to weak consumer spending but continues to deliver solid growth thanks to acquisitions and its expanding EBITS margins.

The team at Morgans thinks income investors should be taking advantage of its share price weakness. Particularly given the generous dividend yields on offer with its shares. Morgans expects partially franked dividends per share of 41 cents in FY 2026 and then 46 cents in FY 2027. Based on its current share price of $7.32, this would mean dividend yields of 5.6% and 6.3%, respectively.

Morgans has a buy rating and $10.10 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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