The Australian share market is a great place to generate a passive income.
But which ASX dividend shares could be top picks for investors right now? Let's take a look at two that analysts rate as buys. Here's what you need to know about them:
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Qualitas Ltd (ASX: QAL)
The first ASX dividend share that has been named as a buy is alternative real estate funds management company Qualitas.
It invests capital on behalf of investors throughout the major capital cities of Australia, as well as New Zealand and the US.
Macquarie is positive on the company and its outlook. Particularly given increasing interest in private commercial real estate (CRE) credit. It said:
Outperform $3.98 TP. QAL is progressing on its strategy to grow committed FUM and deploy proceeds, benefiting from capital interest in private CRE credit. We believe our forecast 19% EPS growth in FY26 is attractive, even with QAL on 25x earnings following the recent re-rate.
As for income, the broker is forecasting fully franked dividends per share of 11.5 cents in FY 2026 and then 13.2 cents in FY 2027. Based on its current share price of $3.43, this equates to dividend yields of 3.3% and 3.8%, respectively.
Macquarie has an outperform rating and $3.98 price target on its shares.
Rural Funds Group (ASX: RFF)
Another ASX dividend stock that gets the thumbs up by analysts is agricultural property company Rural Funds.
It owns a diversified portfolio of agricultural assets predominantly leased to corporate and institutional lessees. Historically, its assets have been acquired in sectors where Australia has a comparative advantage, and it has operational experience.
Bell Potter believes that the company's shares are undervalued at current levels. It said:
Our Buy rating is unchanged. The ~35% discount to market NAV remain higher than average (~6% premium since listing) and likely reflects the proportion of assets that are underearning as operating farms. With a continued improvement in most counterparty profitability indicators in recent months (i.e. cattle, almond and macadamia nut prices), resilience in farming asset values and the progress made in creating headroom in funding lines to complete the macadamia development we see this as excessive.
As for income, the broker is forecasting dividends per share of 11.7 cents in both FY 2026 and FY 2027. Based on its current share price of $1.90, this would mean dividend yields of almost 6.2% for both years.
Bell Potter currently has a buy rating and $2.45 price target on its shares.
