Buy BHP and this top ASX dividend share this week

Analysts think these shares could be top buys for income investors. Let's see what they offer.

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Key points

  • Dividend-paying ASX shares, such as those from Accent Group and BHP, offer reliable income, long-term stability, and compounding benefits through reinvestment.
  • Accent Group combines strong retail performance with a growing online presence, leading to consistent dividends and projected yield increases.
  • BHP provides generous dividends supported by strong cash generation, despite cyclical earnings influenced by global commodity prices.

If you're looking for reliable income and long-term stability, dividend-paying ASX shares can be a great place to start.

They provide investors with regular cash flow, the potential for capital growth, and when held over many years, the compounding benefits that come from reinvesting those dividends.

Right now, several high-quality ASX dividend shares stand out as smart options for income-focused investors. Here are two that analysts rate as buys and expect good dividend yields from in the near term:

Accent Group Ltd (ASX: AX1)

Accent Group is the owner of a stable of popular footwear focused retail brands, including Platypus, HypeDC, Skechers, and The Athlete's Foot.

This ASX dividend share operates over 800 stores and has built a powerful multichannel business that combines strong in-store sales with a growing online presence. Its strategy of owning exclusive retail and distribution rights gives it pricing power and brand control, which are key ingredients for maintaining profitability in the retail sector.

Importantly for income investors, Accent has been a consistent dividend payer, supported by strong cash flows and a management team that prioritises shareholder returns.

Bell Potter expects this trend to continue and is forecasting fully franked dividends of 7.8 cents per share in FY 2026 and then 9.2 cents per share in FY 2027. Based on its current share price of $1.32, this would mean dividend yields of 5.9% and 7%, respectively.

The broker has a buy rating and $1.80 price target on Accent's shares.

BHP Group Ltd (ASX: BHP)

Another ASX dividend share to look at is BHP. It is one of the world's largest diversified miners, producing iron ore, copper, and coal from its portfolio of world-class assets across Australia and South America.

The company has a long history of paying generous, fully franked dividends, supported by strong cash generation and disciplined capital management. And while BHP's earnings are cyclical and influenced by global commodity prices, its low-cost operations and balance sheet strength give it a competitive edge through market cycles.

For example, the team at Morgan Stanley believe the miner is positioned to pay fully franked dividends of approximately $1.90 per share in FY 2026 and then $1.68 per share in FY 2027. Based on its current share price of $43.24, this would mean dividend yields of 4.4% and 3.9%, respectively.

Morgan Stanley currently has an overweight rating and $48.00 price target on BHP's shares.

Motley Fool contributor James Mickleboro has positions in Accent Group. 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 Accent Group and BHP 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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