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:

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:

Middle age caucasian man smiling confident drinking coffee at home.

Image source: Getty Images

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

A boy is about to rocket from a copper-coloured field of hay into the sky.
Dividend Investing

2 ASX income stocks with rocketing dividends

For me, dividend growth trumps yield.

Read more »

An older couple use a calculator to work out what money they have to spend.
Dividend Investing

100,720 shares of this high-yield ASX dividend stock pay income equal to the Age Pension

Generating a full income from dividends sounds appealing, but how much do you actually need?

Read more »

Australian dollar notes in businessman pocket suit, symbolising ex dividend day.
Dividend Investing

2 ASX shares with dividend yields above 7%

Large yields could be very appealing right now.

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Dividend Investing

1 ASX dividend stock down 50% I'd buy

This ASX dividend stock has been under pressure. But looking ahead, there are signs the story could be starting to…

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Share Market News

How much do I need to invest in ASX shares to earn a $500 monthly passive income?

A $500 per month passive income is more achievable than you'd think.

Read more »

Growth of ASX share price represented by tiny beans stalk shooting up into the sky
Dividend Investing

3 ASX dividend shares I'd hold through anything

This trio has scale, resilience, and cash flow to endure market cycles.

Read more »

Two players on a field pump their fists in the air, indicating two of the best
Dividend Investing

Bell Potter names the best ASX dividend shares to buy

The broker has named these shares as best buys this month.

Read more »

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

Down 40%: These high-yield ASX dividend shares are rated as buys

Brokers expect these buy-rated shares to offer 6% to 11% dividend yields.

Read more »