3 excellent ASX dividend shares to buy for passive income

Analysts think these shares could be top picks 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
  • Centuria Industrial REIT offers defensive assets with strong dividend yields of 4.75% and 5.1% for FY 2026 and FY 2027, supported by high-quality industrial properties.
  • Nick Scali, a furniture retailer expanding into the UK, is expected to deliver fully franked dividend yields of 2.8% and 3.4% over the next two years, indicating growth potential.
  • Universal Store Holdings is predicted to provide dividend yields of 4.2% and 4.65%, backed by brand expansion and a solid online presence.

Are you looking for some ASX dividend shares for your passive income portfolio?

If you are, then it could be worth considering the three shares in this article that analysts rate as buys this month.

Here's what they are expecting from them in the near term:

A sophisticated older lady with shoulder-length grey hair and glasses sits on her couch laughing while looking at her phone

Image source: Getty Images

Centuria Industrial REIT (ASX: CIP)

The Centuria Industrial REIT could be an ASX dividend share to buy according to analysts at UBS.

It is a pure-play industrial property trust that owns a high-quality portfolio of warehouses, logistics hubs, and distribution centres across Australia.

The broker likes the company due to its defensive assets and long weighted average lease expiry. It believes this positions it to pay dividends per share of 16.8 cents in FY 2026 and then 17.9 cents in FY 2027. Based on its current share price of $3.53, this equates to dividend yields of 4.75% and 5.1%, respectively.

UBS has a buy rating and $3.95 price target on its shares.

Nick Scali Limited (ASX: NCK)

The team at Citi thinks that Nick Scali could be an ASX dividend share to buy now.

The broker believes the furniture retailer is well-placed for growth in the coming years. This is thanks partly to its expansion in the United Kingdom.

Citi expects this to underpin fully franked dividends of 66.6 cents in FY 2026 and then 80.7 cents in FY 2027. Based on its current share price of $23.51, this would mean dividend yields of 2.8% and 3.4%, respectively.

Citi has a buy rating and $24.40 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX dividend share that analysts are tipping as a buy is Universal Store.

Despite operating in a tough environment, the youth fashion retailer was on form again in FY 2025 and has started the new financial year strongly.

And with the company expanding the footprint of its brands and building its online presence, Bell Potter believes it is well positioned to build on this in the coming years.

The broker expects this to underpin fully franked dividends of 36.8 cents per share in FY 2026 and 41.1 cents per share in FY 2027. Based on its current share price of $8.83, this equates to dividend yields of 4.2% and 4.65%, respectively.

Bell Potter has a buy rating and $10.50 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Nick Scali and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ASX Share Market News

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

It wasn't a great Friday session for the ASX.

Read more »

three excited doctors with hands in the air
Broker Notes

Buy, hold, sell: Super Retail, APA, Sonic Healthcare shares

As earnings season continues, brokers have issued new ratings on these 3 ASX 200 shares.

Read more »

Stressed businessman sits in panic amid digital stock market financial background.
Share Fallers

Why Megaport, Lendlease and JB Hi-Fi shares all crashed 14% to 15% this week

ASX investors punished Lendlease, Megaport, and JB Hi-Fi this week. But why?

Read more »

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.
Share Gainers

3 ASX 200 stocks, including CSL, leaping 15% to 23% in this week's sliding market

Investors sent CSL shares and these two ASX 200 stocks soaring in this week’s sinking market. But why?

Read more »

Businesswoman with a pleased smile reading on her laptop at a desk in the office with a look of satisfaction.
ASX Share Market News

8 ASX shares just upgraded by the experts

Brokers have increased their ratings on CSL, IAG, Fortescue, A2 Milk, and others this week. 

Read more »

A woman in a red dress holding up a red graph.
Broker Notes

3 ASX shares UBS says will return better than 36%

These three companies have big things ahead, according to UBS.

Read more »

A woman is excited as she reads the latest rumour on her phone.
ASX Share Market News

Why Guzman Y Gomez, Pro Medicus and James Hardie shares are turning heads on Friday

Pro Medicus, Guzman Y Gomez, and James Hardie shares are creating a buzz on Friday. But why?

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Broker Notes

Up more than 200% over a year, could this ASX lithium company double again?

The potential upside on these shares might surprise.

Read more »