These top ASX dividend stocks offer 5% yields

Income investors might want to check out these stocks that brokers rate as buys.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Centuria Industrial REIT continues to strengthen its position with a robust portfolio and long-term leases, making it resilient amidst rising interest rates.
  • Transurban is set for growth with its strategic development pipeline and remains a key player in toll roads, contributing positively to its impressive yield prospects.
  • Universal Store Holdings is thriving by leveraging its multi-brand strategy, maintaining strong performance even in a challenging retail environment.

There are a lot of options out there for income investors to choose from on the Australian share market.

To narrow things down, let's take a look at three ASX dividend stocks that brokers have named as buys. Here's what they are saying about them:

A couple sits in their lounge room with a large piggy bank on the coffee table. They smile while the male partner feeds some money into the slot while the female partner looks on with an iPad style device in her hands as though they are budgeting.

Image source: Getty Images

Centuria Industrial REIT (ASX: CIP)

Centuria Industrial REIT could be an ASX dividend stock to buy.

It is one of Australia's leading owners of industrial real estate with a portfolio including major distribution hubs that are leased to blue-chip tenants in e-commerce, manufacturing, and logistics.

Management notes that its portfolio includes 87 high-quality, fit-for-purpose industrial assets worth a collective $3.89 billion. These assets are situated in key in-fill locations and close to key infrastructure.

Although rising interest rates have pressured the broader property sector in recent times, Centuria Industrial REIT's long-term leases and stable rental income leave it well placed for the future.

For example, UBS believes the company is now positioned to pay dividends per share of 16.8 cents in FY 2026 and then 17.9 cents in FY 2027. Based on its current share price of $3.41, this equates to dividend yields of 4.9% and 5.25%, respectively.

The broker currently has a buy rating and $3.95 price target on its shares.

Transurban Group (ASX: TCL)

Another ASX dividend stock that could be a buy according to analysts is Transurban.

It is the toll road operator behind CityLink in Melbourne and WestConnex in Sydney, as well as many other important roads across Australia and North America. It also has a development pipeline that looks set to support its long term growth.

The team at Citi believes the company is well-placed to pay dividends of 69.9 cents in FY 2026 and 74.1 cents in FY 2027. Based on its current share price of $14.82, this would mean dividend yields of 4.7% and 5%, respectively.

Citi has a buy rating and $16.10 price target on Transurban's shares.

Universal Store Holdings Ltd (ASX: UNI)

Finally, youth fashion retailer Universal Store has been quietly delivering for shareholders despite a challenging retail environment.

Bell Potter believes this trend can continue thanks to its multi-brand strategy across Universal Store, Thrills, and Perfect Stranger and growing private-label penetration.

The broker expects this to support fully franked dividends of 37.3 cents per share in FY 2026 and 41.4 cents per share in FY 2027. Based on the current share price of $8.24, this implies yields of 4.5% and 5%, respectively.

Bell Potter has a buy rating and $10.50 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Dividend Investing

3 ASX dividend shares to double up on right now

Analysts have buy ratings on these top income stocks.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

Passive income investors: This ASX stock has an 8% yield and monthly payouts

The shares climbed higher on Tuesday.

Read more »

Happy woman working on a laptop.
Dividend Investing

A top ASX dividend stock to buy on a pullback

With a strong track record and steady dividends, this stock would be very attractive at cheaper prices.

Read more »

A mother helping her son use a laptop at the family dining table.
Dividend Investing

3 of the safest ASX 200 dividend stocks in Australia

For investors seeking dependable dividends, these ASX 200 shares could provide a strong foundation for long-term income.

Read more »

A couple working on a laptop laugh as they discuss their ASX share portfolio.
Dividend Investing

A dependable ASX dividend stock to buy with $20,000 right now

This ASX blue-chip may not be flashy, but its steady earnings and dividends could make it a dependable income pick.

Read more »

Australian notes and coins symbolising dividends.
Dividend Investing

3 ASX dividend shares yielding 5%+ that still have growth potential

These shares are a great option for passive income seeking investors.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face.
Dividend Investing

1 super cheap ASX dividend stock down 16% to buy and hold for decades

The stock was caught up in a sector-wide selloff earlier this month.

Read more »

A mature aged man with grey hair and glasses holds a fan of Australian hundred dollar bills up against his mouth and looks skywards with his eyes as though he is thinking what he might do with the cash.
Dividend Investing

Grow your dividends alongside your job earnings with these Australian stocks

These stocks are delivering rising payouts year after year.

Read more »