Buy these excellent ASX dividend shares for 4% to 6% yields

Analysts think income investors should be buying these shares in October.

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Key points

  • A diversified property company is positioned for growth with expected dividend yields driven by Australia's housing demand.
  • A leading wine producer is positioned for growth following the easing of trade barriers, enhancing dividend potential.
  • A youth-focused fashion retailer's expansion supports continued dividend growth, making it a compelling buy.

Do you have space in your income portfolio for some new additions to your income portfolio in October?

If you do, then it could be worth considering the three ASX dividend shares in this article that brokers rate as buys. Here's what they are recommending:

Cedar Woods Properties Limited (ASX: CWP)

The first ASX dividend share that analysts have named as a buy is Cedar Woods. It is one of Australia's leading property companies with a portfolio diversified by geography, price point and product type.

The company's diversified product mix ranges from land subdivisions in emerging residential communities, to medium and high-density apartments and townhouses in vibrant inner-city neighbourhoods and supporting retail and commercial developments. This leaves it well-positioned to benefit from Australia's chronic housing shortage.

The team at Bell Potter is positive on its outlook and expects this portfolio to support the payout of dividends per share of 33 cents in FY 2026 and then 36 cents in FY 2027. Based on its current share price of $7.69, this equates to 4.3% and 4.7% dividend yields, respectively.

The broker has a buy rating and $8.75 price target on its shares.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX dividend share that could be a buy in October is Treasury Wine.

It is a wine giant with a focus on premium and luxury brands like Penfolds. It has been struggling this year due to weak consumer spending.

However, with interest rates falling and China removing tariffs from Australian wine, it is possible that premium demand will pick up in the near future and support a new growth phase.

Morgans remains positive on the stock and expects partially franked dividends of 41 cents per share in FY 2026 and then 46 cents per share in FY 2027. Based on its current share price of $7.06, this would mean dividend yields of 5.8% and 6.5%, respectively.

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

Universal Store Holdings Ltd (ASX: UNI)

Finally, youth-focused fashion retailer Universal Store has been a strong performer in recent years.

The ASX dividend share is executing very well on its national store rollout strategy and has delivered a growing stream of dividends since its IPO.

The good news is that Bell Potter expects this trend to continue. It is forecasting fully franked dividends of 36.8 cents per share in FY 2026 and then 41.1 cents per share in FY 2027. Based on its current share price of $8.75, this equates to dividend yields of 4.2% and 4.7%, respectively.

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

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates and 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 Treasury Wine Estates and Universal Store. 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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