3 strong ASX dividend shares to buy and hold

Analysts think income investors should be buying these shares.

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Key points

  • For income-focused investors, Aurizon Holdings, Telstra, and Transurban are rated as buy recommendations, promising attractive dividend yields in the coming years.
  • Aurizon, Telstra, and Transurban offer fully franked dividends with projected yields up to 6.4%, 4.3%, and 5.1% respectively, based on current share prices.
  • Analysts highlight growth potential and strong market positions for these companies, supporting their ability to deliver consistent dividends.

If you are looking to strengthen your income portfolio with some high-quality ASX dividend shares, then it could be worth considering the three in this article.

That's because these shares have been rated as buys and tipped to provide investors with attractive dividend yields in the coming years.

Here's what they are recommending to clients this week and what sort of yields are on offer for income investors:

Aurizon Holdings Ltd (ASX: AZJ)

Macquarie thinks that rail freight operator Aurizon could be an ASX dividend stock to buy.

Although its performance has been relatively mixed, the broker believes it is positioned for growth in the near term. As a result, it sees value in the company's shares at current levels.

It also expects some attractive dividend yields from its shares. Macquarie is forecasting fully franked dividends per share of 19.6 cents in FY 2026 and then 21.8 cents in FY 2027. Based on its current share price of $3.41, this equates to dividend yields of 5.75% and 6.4%, respectively.

Macquarie has an outperform rating and $3.70 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Another ASX dividend share that could be a buy for income investors is Telstra.

It remains a top choice for dividend-focused investors and it isn't hard to see why. Its leading position in Australia's mobile and broadband markets supports consistent cash flows.

Analysts at Macquarie expect this to underpin fully franked dividends of 20 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $4.85, this would mean dividend yields of 4.1% and 4.3%, respectively.

Macquarie has an outperform rating and $5.04 price target on Telstra's shares.

Transurban Group (ASX: TCL)

Toll road giant Transurban could be another ASX dividend share to buy according to analysts.

The team at Citi remains positive on the company and has been pleased with recent traffic growth trends.

It believes this could allow Transurban to outperform its dividend guidance this year. As a result, it is forecasting dividends per share of 69.5 cents in FY 2026 and then 73.7 cents in FY 2027. Based on its current share price of $14.41, this would mean dividend yields of 4.8% and 5.1%, respectively.

The broker currently has a buy rating and $16.10 price target on its shares.

Citigroup is an advertising partner of Motley Fool Money. 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 positions in and has recommended Macquarie Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Macquarie Group, Telstra Group, and Transurban 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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