Forget Westpac shares and buy these ASX dividend stocks

Analysts think these shares would be better buys for income investors.

| More on:
A young bank customer wearing a yellow jumper smiles as she checks her bank balance on her phone.

Image source: Getty Images

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 is highlighted by UBS as a strong alternative to big bank stocks, backed by a $3.95 price target and attractive dividend yields forecasted to reach 5.2% by FY 2027, thanks to its robust portfolio of industrial assets in strategic locations.
  • IPH offers compelling income prospects with Morgans recommending a buy rating and a $6.05 target, underpinned by projected fully franked dividends that deliver impressive yields of 10.6%, positioning it as an appealing choice amid softer trading conditions.
  • Sonic Healthcare is seen as poised for consistent growth with Bell Potter endorsing a buy rating and a $33.30 target, supported by forecasts of dividend yields near 4.8% by FY 2027 as it leverages its global reach in medical diagnostics.

While Westpac Banking Corp (ASX: WBC) and the rest of the big four banks have been great picks for income investors in recent years, there are signs that their shares could have peaked now.

In light of this, investors may get better results by focusing on other areas of the share market.

But which ASX dividend stocks? Let's take a look at three that analysts are bullish on right now:

Centuria Industrial REIT (ASX: CIP)

The first ASX dividend stock that could be a great alternative is Centuria Industrial REIT.

It is one of Australia's leading industrial real estate companies. 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.

The team at UBS thinks investors should be buying its shares and has put a buy rating and $3.95 price target on them.

As for income, the broker is forecasting 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 $3.46, this equates to dividend yields of 4.85% and 5.2%, respectively.

IPH Ltd (ASX: IPH)

Another ASX dividend stock that gets the thumbs up from analysts is IPH.

It is a global intellectual property services company that helps clients protect their patents, trademarks, and intellectual property across multiple jurisdictions. Its clients range from Fortune 500 companies to SMEs.

While trading conditions are soft at present, Morgans remains positive. It currently has a buy rating and $6.05 price target on its shares.

With respect to income, the broker is expecting IPH to reward shareholders with fully franked dividends of 37 cents per share in FY 2026 and FY 2027. Based on its current share price of $3.49, this implies very generous dividend yields of 10.6% for both years.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare has also been named as an ASX dividend stock to buy now.

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

Bell Potter thinks the company is ready for a return to consistent growth and feels investors should be snapping up its shares. It recently put a buy rating and $33.30 price target on its shares.

As for income, the broker is forecasting 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 $23.12, this equates to dividend yields of 4.7% and 4.8%, respectively.

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended IPH Ltd and Sonic Healthcare. 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

Man open mouthed looking shocked while holding betting slip
Dividend Investing

1 magnificent Australian dividend stock down 15% to buy and hold forever

Lotteries are a proven cash cow.

Read more »

woman in white shirt splashing money in the air
Dividend Investing

Own IVV or IOO ETFs? It's dividend payday for you!

Investors holding iShares ETFs comprised of international shares will receive their dividends today.

Read more »

A large clear wine glass on the left of the image filled with fifty dollar notes on a timber table with a wine cellar or cabinet with bottles in the background.
Dividend Investing

Which of the big 4 ASX 200 bank stocks paid the most passive income in 2025?

Just how much passive income did the ASX 200 banks like CBA pay in 2025?

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Buy 2,000 shares of this top ASX dividend stock for $860 in passive income

This buy-rated stock offers an attractive yield and major upside according to Macquarie.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

This is the ASX 200 share offering a 6.25% dividend yield

This business looks undervalued and offers a big dividend yield.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

Forget term deposits and buy these ASX dividend shares

These dividend shares could be great additions to a balanced income portfolio.

Read more »

Happy young couple saving money in piggy bank.
Dividend Investing

Buy these ASX dividend stocks for 5% to 10% yields: Experts

Analysts expect these shares to provide big yields in the near term.

Read more »

Happy woman holding $50 Australian notes
Dividend Investing

Which ASX 200 market sectors delivered the best dividend yields in 2025?

Here are the dividend yields of each of the 11 market sectors in 2025.

Read more »