Brokers name 3 ASX dividend shares to buy in December

Let's see what they are recommending to clients this month.

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Key points

  • Jumbo Interactive, renowned for its lottery platforms, is seen as a strong buy by Morgan Stanley, with impressive projected dividend yields of up to 6.4% over the next couple of years—a tempting offer at its current valuation.
  • Telstra, Australia's telecom giant, is poised for steady dividend growth thanks to its strategic focus on connectivity, with Macquarie highlighting dividends that could reach 4.3% by FY 2027.
  • Woolworths, a staple in many portfolios due to its robust supermarket business, shows promising signs of bouncing back, with future dividends expected to rise, offering yields up to 3.4%.

There are a lot of ASX dividend shares to choose from on the local share market.

But which ones could be buys in December? Let's take a look at three that brokers rate as buys:

Jumbo Interactive Ltd (ASX: JIN)

Analysts at Morgan Stanley thinks that Jumbo Interactive could be an ASX dividend share to buy this month.

It is an online lottery ticket seller and lottery platform provider. It is best known for the Oz Lotteries app and the Powered by Jumbo platform.

Morgan Stanley has been pleased with its positive start to the financial year and believes it is positioned to reward shareholders with fully franked dividends of 57.7 cents per share in FY 2026 and then 68.4 cents per share in FY 2027. Based on its current share price of $10.76, this would mean dividend yields of 5.4% and 6.4%, respectively.

The broker currently has an overweight rating and $16.80 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Telstra is another ASX dividend share that analysts are tipping as a buy. As Australia's largest telecommunications provider, it benefits from nationwide mobile demand, essential network usage, and growing data consumption.

Telstra's fully franked dividend has been growing at a solid rate in recent years thanks to its successful T22 and T25 strategies. Looking ahead, this trend is likely to continue thanks to its new Connected Future 30 strategy which aims to double down on connectivity and radically innovate the core of its business.

Macquarie expects this to underpin 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 of $4.90, this would mean dividend yields of 4.1% and 4.3%, respectively.

The broker has an outperform rating and $5.04 price target on Telstra's shares.

Woolworths Group Ltd (ASX: WOW)

Defensive earnings, stable cash flow, and a dominant market position make Woolworths a favourite among income-focused investors.

Supermarkets tend to hold up in all economic conditions because people still need groceries regardless of interest rates, inflation, or consumer sentiment. This makes Woolworths' dividends highly dependable.

And while its performance has been disappointing this year, there are signs that it is now over the worst and ready to return to solid and sustainable growth.

Bell Potter expects the company to pay 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 $29.39, this would mean dividend yields of 3.1% and 3.4%, respectively.

The broker has a buy rating and $33.00 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 Jumbo Interactive and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group, Telstra Group, and Woolworths Group. The Motley Fool Australia has recommended Jumbo Interactive. 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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