Where to invest $5,000 in ASX dividend shares this month

Analysts think these shares could be quality picks for income investors.

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Key points

  • Centuria Industrial REIT is highlighted by UBS as a promising ASX dividend share, with projected attractive yields of 4.9% in FY 2026 and 5.2% in FY 2027, based on its strong portfolio of industrial properties.
  • Harvey Norman is recommended by Bell Potter due to its potential growth from AI-driven device cycles, with expected fully franked dividend yields of 4.2% in FY 2026 and 4.8% in FY 2027.
  • HomeCo Daily Needs REIT is another UBS recommendation, offering high dividend yields of 6.5% in FY 2026 and FY 2027 from its convenience-focused retail assets leased to blue-chip tenants.

If you are lucky enough to have $5,000 to invest in the share market this month, then the ASX dividend shares in this article could be top picks.

Here's what analysts are saying about these income options in October:

Centuria Industrial REIT (ASX: CIP)

The first ASX dividend share that could be a buy with the $5,000 is Centuria Industrial REIT.

It is Australia's largest domestic industrial property investment company, with a portfolio of high-quality assets found in key metropolitan areas.

UBS is a fan of the company and believes it will pay dividends of 16.8 cents per share in FY 2026 and then 17.9 cents per share in FY 2027. Based on its current share price of $3.43, this would mean dividend yields of 4.9% and 5.2%, respectively.

The broker currently has a buy rating and $3.95 price target on its shares.

Harvey Norman Holdings Limited (ASX: HVN)

Bell Potter is a big fan of retail giant Harvey Norman and sees it as an ASX dividend share to buy this month.

Its analysts believe the company is well-positioned for growth thanks to its exposure to an AI-driven device upgrade cycle.

Bell Potter expects this to underpin the payout of 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 $7.41, this would mean dividend yields of 4.2% and 4.8%, respectively.

Bell Potter has a buy rating and $8.30 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

The team at UBS also believes that HomeCo Daily Needs REIT could be an ASX dividend share to buy with the $5,000 this month.

It is a real estate investment trust (REIT) that owns and operates a portfolio of convenience-based retail assets, including neighbourhood shopping centres and large-format retail properties. These are predominantly leased to blue chip tenants such as supermarket and retail giants.

UBS believes the company is well-placed to pay some big dividends in the near term. It is forecasting dividends of 9 cents per share in both FY 2026 and FY 2027. Based on the current HomeCo Daily Needs share price of $1.38, this implies generous dividend yields of 6.5% for both years.

The broker currently has a buy rating and $1.53 price target on its shares.

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. 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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