Forget CBA and buy these ASX dividend stocks this month

Analysts are bullish on these shares and think they are better picks than Australia's largest bank.

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Key points

  • Analysts suggest considering ASX dividend stocks APA Group, Harvey Norman, and Transurban Group over Commonwealth Bank due to their solid income potential and favourable valuations.
  • APA Group delivers stable, contracted revenue with significant dividend yields projected over the coming years, supported by a positive outlook from Macquarie.
  • Harvey Norman offers income stability through its strong property portfolio, while Transurban provides inflation-linked revenue growth, with both receiving buy ratings from their respective analysts.

Commonwealth Bank of Australia (ASX: CBA) might be one of the most widely held shares in the country, but that doesn't necessarily make it a good buy right now.

Analysts across the board see the banking giant as severely overvalued, with its shares trading on one of the highest bank price-to-earnings multiples in the world. As a result, most brokers currently have the equivalent of sell ratings on them.

For income investors, there are better options. Here are three ASX dividend stocks that analysts think could be worth a look this month:

APA Group (ASX: APA)

APA Group owns and operates one of Australia's largest networks of natural gas pipelines, along with renewable and electricity transmission assets. Its revenues are largely contracted and regulated, making them relatively resilient through economic cycles.

The team at Macquarie is positive on the company and believes it is well-placed to pay generous dividends in the near term. It is forecasting dividends per share of 58 cents in FY 2026 and then 59 cents in FY 2027. Based on its current share price of $8.97, this would mean dividend yields of 6.5% and 6.6%, respectively.

Macquarie currently has an outperform rating and $9.23 price target on its shares.

Harvey Norman Holdings (ASX: HVN)

Another ASX dividend stock that could be a buy is Harvey Norman. It is a household name in furniture, electronics, and appliances. While retail is a cyclical sector, Harvey Norman sets itself apart with its strong property portfolio, which provides both stability and an additional layer of asset backing for shareholders.

Bell Potter is bullish on the retailer and thinks it would be a good option for income investors. It is forecasting fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. Based on its current share price of $7.47, this would mean dividend yields of 4.1% and 4.7%, respectively.

The broker has a buy rating and $8.30 price target on the company's shares.

Transurban Group (ASX: TCL)

Finally, Transurban could be a good alternative to CBA. It is the toll road giant that operates a network of roads across Australia and North America. Its revenues are underpinned by inflation-linked pricing, giving it the ability to steadily grow distributions over time.

Citi is a fan of the company and believes its shares offer good yields and plenty of upside. In respect to the former, the broker is forecasting dividends per share of 69.9 cents in FY 2026 and then 74.1 cents in FY 2027. Based on its current share price of $13.83, this equates to dividend yields of 5% and 5.35%, respectively.

Citi currently has a buy rating and $16.10 price target on the ASX dividend stock.

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group, Harvey Norman, and Macquarie Group. 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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