Fortunately for income investors, there are plenty of ASX dividend shares for investors to choose from on the local market.
But which ones could be buys for investors with $5,000 to put to work this month?
Let's look at three dividend shares that analysts are bullish on and see what sort of dividend yields could be on offer in the near future. Here's what they are recommending:
Coles Group Ltd (ASX: COL)
The first ASX dividend share that could be a buy is Coles. As one of the nation's largest supermarket operators, it generates steady cash flow regardless of the broader economic climate. After all, people always need food and essentials.
Together with price increases and cost reductions, Coles has been growing its dividend at a solid rate for years.
Morgan Stanley believes this trend can continue. It is forecasting fully franked dividends per share of 83 cents in FY 2026 and then 90 cents in FY 2027. Based on its current share price of $23.28, this would mean 3.6% and 3.9% dividend yields, respectively.
Morgan Stanley has an overweight rating and $26.80 price target on its shares.
HomeCo Daily Needs REIT (ASX: HDN)
Another ASX dividend share that could be a buy according to analysts is the HomeCo Daily Needs REIT. This real estate investment trust (REIT) focuses on convenience-based retail centres such as supermarkets, pharmacies, medical clinics, and pet stores. These are assets with stable tenants and long leases.
With a portfolio designed to weather economic cycles, this property company has rewarded its shareholders with big dividends in the past. And UBS expects this to continue in the near term. It is forecasting dividends of 9 cents per share in FY 2026 and FY 2027. Based on its current share price of $1.35, this would mean dividend yields of 6.7% for both years.
UBS has a buy rating and $1.53 price target on its shares.
IPH Ltd (ASX: IPH)
Finally, the team at Morgans thinks that IPH could be an ASX dividend share to buy in October.
It is one of the world's leading intellectual property services providers, assisting companies of all sizes across the globe with patents, trademarks, and legal protection.
Morgans believes the company is positioned to reward its shareholders with fully franked dividends of approximately 37 cents per share in FY 2026 and FY 2027. Based on the current IPH share price of $3.59, this will mean dividend yields of approximately 10%.
Morgans has a buy rating and $6.05 price target on its shares.
