Should you buy Woolworths and these ASX dividend shares?

Let's see what analysts are saying about these income options.

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Key points

  • HomeCo Daily Needs REIT is favoured by UBS for its stable real estate portfolio focused on essential retail properties, offering high predicted dividend yields of 6.5% to 6.6% and a buy rating with a price target of $1.53.
  • Sonic Healthcare is highlighted by Bell Potter as poised for growth, offering dividend yields of 4.7% to 4.8% and a buy recommendation with a $33.30 target, benefiting from its strong diagnostics presence globally.
  • Woolworths, with its resilient market position and growth potential, is expected to deliver solid dividends of 3.25% to 3.55%, garnering a buy rating from Bell Potter with a target price of $30.70.

Are you on the lookout for some ASX dividend shares to buy for your income portfolio?

If you are, then read on because listed below are three that broker currently rate as top buys. Here's what you need to know about them:

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT could be a top pick according to analysts at UBS.

It is a real estate investment trust that 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.

It notes that its geographically diverse national footprint is 86% metro-located and exposed to markets with above average population growth. It has no exposure to department stores and minimal exposure to discretionary retail and fashion.

Its three largest shareholders are Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), and Woolworths.

UBS believes the company is positioned to pay 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 $1.32, this would mean dividend yields of 6.5% and 6.6%, respectively.

UBS has a buy rating and $1.53 price target on its shares.

Sonic Healthcare Ltd (ASX: SHL)

Bell Potter has named Sonic Healthcare as an ASX dividend share to buy now.

It is a medical diagnostics company that operates laboratories and collection centres across Australia, Europe, and the United States.

After a tough period, Bell Potter thinks the company is ready for a return to consistent growth. 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 $23.09, this equates to dividend yields of 4.7% and 4.8%, respectively.

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

Woolworths Group Ltd (ASX: WOW)

Finally, Woolworths could be a top ASX dividend share to buy right now.

While the supermarket giant may not offer the largest dividend yield, it does have potential to grow strongly over the next decade as its earnings rebound and then return to steady growth.

Bell Potter expects Woolworths to reward its shareholders with fully franked dividends of 91 cents per share in FY 2026 and then 100 cents per share in FY 2027. Based on its current share price of $28.08, this would mean dividend yields of 3.25% and 3.55%, respectively.

Bell Potter currently has a buy rating and $30.70 price target on Woolworths' shares.

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 Wesfarmers. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT, Sonic Healthcare, and Wesfarmers. 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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