Buy Telstra and these ASX dividend shares for passive income

Analysts are tipping these shares as buys for income investors.

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Key points

  • National Storage REIT, Australia's largest self-storage operator, benefits from consistent demand backed by urbanisation and is expected to provide a solid dividend yield of 5.2% in FY 2026 and FY 2027.
  • Sonic Healthcare, a global leader in pathology and diagnostic imaging, is anticipated to improve its performance and offer dividend yields exceeding 5% over the next couple of years as it normalises operations post-COVID.
  • Telstra, Australia’s top telecom company, is positioned for mobile market growth, supporting dividend yields around 4% in the coming years, which Macquarie sees as promising for income investors.

The Australian share market is one of the most generous in the world, with plenty of ASX dividend shares for passive income investors to choose from.

But which ones could be buys right now? Let's take a look at three that analysts rate highly. They are as follows:

National Storage REIT (ASX: NSR)

National Storage REIT could be an ASX dividend share to buy according to analysts at UBS.

It is Australia and New Zealand's largest self-storage operator, with more than 230 storage centres across both countries.

Demand for self-storage has proven remarkably resilient over the years, supported by population growth, urbanisation, and lifestyle trends such as downsizing and flexible workspaces.

UBS expects this to continue and underpin dividends per share of 12 cents in FY 2026 and FY 2027. Based on its current share price of $2.29, this would mean dividend yields of 5.2%.

The broker currently has a buy and has a $2.57 price target on its shares.

Sonic Healthcare Ltd (ASX: SHL)

Another ASX dividend share that analysts are tipping as a buy is Sonic Healthcare.

It is a leading pathology and diagnostic imaging provider that has operations across the world.

Bell Potter believes the company's performance is about to improve meaningfully, which could make now a good time to invest. It highlights that this is expected to be "driven by right sizing the business, the impact of acquisitions in FY24 and normalising organic operations post COVID."

With respect to income, Bell Potter is forecasting dividends per share of $1.09 in FY 2026 and then $1.11 in FY 2027. Based on its current share price of $21.06, this represents dividend yields of 5.2% and 5.3%, respectively.

Bell Potter has a buy rating and $33.30 price target on its shares.

Telstra Group Ltd (ASX: TLS)

A third option for income investors is Telstra. It is of course Australia's largest telecommunications company.

Macquarie thinks it would be a good pick for income investors. Especially given its belief that the company is positioned to grow its mobile market share over the next 12 months.

Macquarie expects this to support the payment of 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, this would mean dividend yields of 4% and 4.2%, respectively.

The broker has an outperform rating and $5.04 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended 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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