These top ASX dividend stocks offer 5% yields

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

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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:

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.

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