3 top ASX dividend shares to buy for 5% to 6% yields

These high-yield shares have been given buy ratings by analysts.

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Key points

  • For income-focused investors, ASX dividend shares like APA Group offer enticing dividend yields, supported by solid infrastructure and consistent energy flow across Australia’s extensive market.
  • HomeCo Daily Needs REIT provides dependable income through its strong portfolio of retail properties with long-term leases, appealing to investors seeking stability amid various economic climates.
  • Sonic Healthcare stands out as a resilient choice for dividend income, leveraging its global diagnostic services to maintain consistent earnings, making it a promising buy for enduring portfolio growth.

If you are looking for some ASX dividend shares to buy for your income portfolio, then read on!

That's because listed below are three that brokers are tipping as buys. Let's see what they are recommending to clients:

APA Group (ASX: APA)

APA Group is one of Australia's largest energy infrastructure companies. It owns, manages, and operates a diverse, $27 billion portfolio of gas, electricity, solar and wind assets, delivering around half of the nation's domestic gas through 15,000 kilometres of gas pipelines.

Macquarie considers it a strong option for income investors. It has an outperform rating and $9.23 price target on its shares.

As for income, the broker is forecasting some big dividend yields in the near term. It expects dividends of 58 cents per share in FY 2026 and then 59 cents per share in FY 2027. Based on its current share price, this would mean dividend yields of 6.3% and 6.4%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Another option for investors that are seeking steady, predictable income, HomeCo Daily Needs REIT could be a top pick.

This real estate investment trust owns a diversified portfolio of convenience-based retail properties, including supermarkets, healthcare centres, and hardware stores. These are properties that tend to perform well regardless of economic conditions.

With long-term leases and quality tenants such as Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL), HomeCo Daily Needs REIT generates reliable rental income and passes much of that through to shareholders as distributions.

UBS is positive on the company's outlook and sees potential for a share re-rating. It has a buy rating and $1.53 price target on its shares.

In respect to payouts, the broker is forecasting dividends per share of 8.6 cents in FY 2026 and then 8.7 cents in FY 2027. Based on its current share price of $1.35, this would mean dividend yields of 6.4% and 6.5%, respectively.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is another ASX dividend share that could be a good option for income investors.

It is one of the world's largest medical diagnostics companies, operating laboratories and collection centres across Australia, Europe, and the United States. Its services are essential and non-discretionary, giving it a resilient earnings base regardless of market conditions.

Bell Potter thinks it would be a great time to snap up Sonic's shares. It recently put a buy rating and $33.30 price target on them.

As for dividends, it is expecting partially franked payouts of 109 cents per share in FY 2026 and then 111 cents per share in FY 2027. Based on its current share price of $20.78, this equates to dividend yields of 5.25% and 5.3%, respectively.

Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group, Macquarie Group, and Woolworths Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and Sonic Healthcare. 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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