Analysts think BHP and these ASX dividend shares are buys this week

These shares have been given the thumbs up by analysts.

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Key points

  • BHP Group, with its robust operations in iron ore and copper, continues to be a prime choice for income investors, offering attractive dividend yields of over 4% based on Morgan Stanley's forecasts, supported by its strong free cash flow generation.
  • HomeCo Daily Needs REIT offers stability through its convenience-focused retail centres, with long-term tenants like Woolworths and Wesfarmers, leading UBS to project generous dividends and an appealing yield of 6.7%.
  • Sonic Healthcare, known for its global diagnostic services, is set for earnings improvement through cost management and acquisitions, with Bell Potter projecting dividend yields near 4.8% and a substantial price target increase.

If you are on the hunt for income opportunities on the Australian share market, a number of ASX dividend shares are currently catching the attention of analysts.

As well as being labelled as buys, these shares are expected to deliver attractive dividend yields in the coming years and could be worth a closer look for investors wanting a source of passive income.

Here are three ASX dividend shares that brokers are rating as buys right now.

BHP Group Ltd (ASX: BHP)

Mining giant BHP Group remains a favourite for income-focused investors.

And it isn't hard to see why. The Big Australian continues to generate strong free cash flow through its world-class iron ore, copper, and metallurgical coal operations.

It is thanks to these operations that BHP has long been recognised as a dependable payer of large, fully franked dividends.

And Morgan Stanley believes shareholders can expect another couple of healthy years of income. The broker is forecasting fully franked dividend equivalents of $1.90 per share in FY 2026 and $1.70 per share in FY 2027. Based on its current share price of $41.74, this equates to dividend yields of 4.55% and 4.1%, respectively.

Morgan Stanley has an overweight rating and $48.00 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

Income investors may also want to consider HomeCo Daily Needs REIT. This property trust owns and operates convenience-focused retail centres anchored by essential services. These are properties like supermarkets, pharmacies, large-format retailers, and healthcare centres.

Its tenant base includes heavyweights such as Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES), helping underpin stable rental income.

UBS is positive on the company, highlighting the discount between its share price and its net tangible asset value.

It also expects some big distributions over the next two years. The broker is forecasting 9 cents per share in dividends for both FY 2026 and FY 2027. Based on its current share price of $1.35, this equates to dividend yields of 6.7%.

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

Sonic Healthcare Ltd (ASX: SHL)

Another ASX dividend share on brokers' buy lists is Sonic Healthcare.

It operates a global network of pathology and diagnostic imaging services, spanning Australia, the US and Europe.

Bell Potter sees Sonic as a top pick for income investors. The broker believes Sonic is poised for a meaningful improvement in its earnings driven by cost-rightsizing measures, recent acquisitions, and the gradual return to pre-pandemic activity levels across its laboratories and clinics.

The broker expects this to underpin dividends of $1.09 per share in FY 2026 and $1.11 per share in FY 2027. With Sonic shares trading at $23.35, this equates to dividend yields of 4.7% and 4.8%.

Bell Potter has a buy rating and a $33.30 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 Wesfarmers. The Motley Fool Australia has recommended BHP Group, 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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