Buy these ASX dividend shares for 4% to 10% yields

Analysts think these shares could be in the buy zone for income investors.

| More on:
Middle age caucasian man smiling confident drinking coffee at home.

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

Key points

  • Diversified opportunities in the Australian market offer attractive ASX dividend shares with yields ranging from 4% to 10%, suitable for income-focused investors amidst falling interest rates.
  • Analysts highlight a global intellectual property services firm and a large property company as favourable options, with potential for substantial dividend earnings in the coming years.
  • A prominent wine company is also recommended, noted for its appealing valuation despite near-term challenges, presenting a lucrative dividend yield opportunity.

Unfortunately for income investors, the Reserve Bank of Australia is likely to be taking interest rates even lower over the next 12 months.

But don't worry, because the Australian share market and its countless ASX dividend shares are here to save the day!

But which shares would be top picks for income? Let's take a look at three that analysts are tipping as buys:

IPH Ltd (ASX: IPH)

The team at Morgans thinks that IPH could be an ASX dividend share to buy now.

It is an intellectual property (IP) services company that operates across the globe through brands such as AJ Park, Smart & Biggar, and Spruson & Ferguson.

Morgans highlights that "IPH's valuation is undemanding (<10x FY26F PE), however investor patience is required given the delivery of organic growth looks to be the catalyst for a sustained re-rating."

In respect to income, the broker is forecasting fully franked dividends of 37 cents per share in FY 2026 and FY 2027. Based on the current IPH share price of $3.73, this will mean dividend yields of approximately 10% for both years.

Morgans has an add rating and $6.05 price target on its shares.

Stockland Corporation Ltd (ASX: SGP)

Stockland could be an ASX dividend share to buy this month according to analysts at Citi.

It is one of Australia's largest diversified property companies with a specialty in residential communities, land lease communities, town centres, logistics, and office real estate.

Citi likes the company due to its exposure to falling cap rates and favourable supply-demand dynamics.

The broker expects this to underpin dividends of 25.2 cents per share in FY 2026 and then 26.7 cents per share in FY 2027. Based on its current share price of $6.17, this would mean dividend yields of 4.1% and 4.3%, respectively.

Citi has an overweight rating and $6.90 price target on its shares.

Treasury Wine Estates Ltd (ASX: TWE)

Finally, Treasury Wine could also be an ASX dividend share to buy according to analysts at Morgans.

It is the wine company behind the popular brands such as Penfolds, 19 Crimes, Wolf Blass, DAOU, Blossom Hill, and Lindeman's.

Morgans thinks its shares are too cheap to ignore. Its analysts highlight that "while lacking near term share price catalysts given industry and macro headwinds and a CEO transition, trading on an FY26F PE of only 12.7x, we maintain a BUY rating."

As for income, the broker is forecasting 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 $7.38, this would mean dividend yields of 5.55% and 6.2%, respectively.

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

Citigroup is an advertising partner of Motley Fool Money. 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 IPH Ltd 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.

More on Dividend Investing

Beautiful young couple enjoying in shopping, symbolising passive income.
Dividend Investing

2 ASX income stocks I would buy with $2,500 in January

Looking to invest $2,500 for income? These two ASX shares offer reliable dividends backed by essential assets and long-term relevance.

Read more »

A retiree relaxing in the pool and giving a thumbs up.
Healthcare Shares

1 ASX dividend stock down 36% I'd buy right now

This business looks like it’s priced too cheaply.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

Analysts say these ASX dividend shares are top buys

Let's see which shares they are recommending to clients this week.

Read more »

A gold bear and bull face off on a share market chart
Dividend Investing

Own MNRS or ARMR ETFs? Here's why it's a big day for you

Betashares will pay its ASX ETF dividends today.

Read more »

View of a business man's hand passing a $100 note to another with a bank in the background.
Dividend Investing

Own IOZ or ISO ETFs? It's dividend payday for you!

Here's how much you will receive today.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Vanguard will pay ASX ETF dividends today

Invested in ASX VAS or other Vanguard ETFs? Here's how much you will receive today.

Read more »

Woman relaxing at home on a chair with hands behind back and feet in the air.
Dividend Investing

ASX income stocks: A once-in-a-decade chance to get rich

When income stocks fall out of favour, long-term investors often find their best opportunities hiding in plain sight.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Want to build up passive income? These 2 ASX dividend shares are a buy!

These stocks are giving investors exciting payouts every year.

Read more »