3 ASX dividend shares to buy with $5,000

Analysts think these shares could be top picks for income investors.

| More on:
Man holding out Australian dollar notes, symbolising dividends.

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

  • Cedar Woods Properties offers a promising dividend opportunity, poised to benefit from Australia's housing shortage, with Bell Potter anticipating steady dividend growth and a strong buy rating.
  • Harvey Norman's allure lies in its robust retail presence and extensive property portfolio, with Bell Potter expecting high fully franked dividend yields, making it an attractive pick for income investors.
  • Transurban Group stands out with its reliable toll road operations and inflation-linked pricing, ensuring consistent dividend growth, supported by urbanisation trends and Citi's positive buy rating.

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

But which ASX dividend shares could be buys for investors with $5,000 to put into the market? Let's take a look at three that analysts are recommending to clients this month:

Cedar Woods Properties Limited (ASX: CWP)

Cedar Woods could be an ASX dividend share to buy according to Bell Potter.

It is one of Australia's leading property companies with a portfolio that is diversified by geography, price point, and product type. This includes subdivisions in emerging residential communities, high-density apartments, and townhouses in vibrant inner-city neighbourhoods.

Bell Potter notes that this leaves Cedar Woods well-positioned to be a big winner from Australia's chronic housing shortage.

The broker expects this to underpin dividends per share of 34 cents in FY 2026 and then 38 cents in FY 2027. Based on its current share price of $7.69, this equates to 4.4% and 4.9% dividend yields, respectively.

The broker has a buy rating and $9.70 price target on its shares.

Harvey Norman Holdings (ASX: HVN)

Another ASX dividend share that brokers are positive on is Harvey Norman.

This retail giant is a household name in furniture, electronics, and appliances. It also has one of the largest retail property portfolios in Australia, which provides both stability and an additional layer of asset backing for shareholders.

Bell Potter is positive on the retailer and expects fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. Based on its current share price of $7.24, this would mean dividend yields of 4.25% and 4.9%, respectively.

Its analysts have a buy rating and $8.30 price target on the company's shares.

Transurban Group (ASX: TCL)

Transurban is a third ASX dividend share that could be a good option for the $5,000 investment.

It is a toll road giant that operates a network of roads across Australia and North America. This includes CityLink in Melbourne, the Eastern Distributor in Sydney, and AirportlinkM7 in Brisbane.

This portfolio of roads has been experiencing growing traffic volumes over the years and this looks set to continue thanks to urbanisation and population growth. And with its pricing linked to inflation, Transurban is well-placed to steadily grow distributions over the long term.

Citi is forecasting dividends per share of 69.5 cents in FY 2026 and then 73.7 cents in FY 2027. Based on its current share price of $15.10, this equates to dividend yields of 4.6% and 4.9%, respectively.

Citi currently has a buy rating and $16.10 price target on the ASX dividend stock.

Citigroup is an advertising partner of Motley Fool Money. 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 Transurban Group. The Motley Fool Australia has positions in and has recommended Harvey Norman and Transurban Group. 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

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

5 top ASX dividend shares I would buy with $5,000

Let's see why these shares could be best buys for passive income in 2026.

Read more »

a hand reaches out with australian banknotes of various denominations fanned out.
Dividend Investing

These 2 ASX dividend shares are great buys right now

These defensive names look like strong picks today.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

$5,000 to invest? Consider 4 no-brainer ASX dividend shares with over 20 years of growth

These stocks are fantastic options for long-term passive income.

Read more »

A family drives along the road with smiles on their faces.
Dividend Investing

3 ASX dividend shares worth holding forever

Let's see what makes these shares great buy and hold options for income investors.

Read more »

Woman holding $50 notes with a delighted face.
Dividend Investing

1 perfect retirement stock with a 4.58% payout each month

This dividend-paying stock is perfect for retirees.

Read more »

Woman calculating dividends on calculator and working on a laptop.
Dividend Investing

3 ASX dividend shares to buy with $20,000 in 2026

Let's see why these shares could be smart picks for income investors right now.

Read more »

A woman looks quizzical while looking at a dollar sign in the air.
Dividend Investing

At 13.4%, this ASX 200 dividend stock has the largest yield on the index

Is any 13% yield sustainable?

Read more »

Smiling man holding Australian dollar notes, symbolising dividends.
Bank Shares

How many CBA shares do I need to buy for $1,000 of annual passive income?

Here’s what it would take to make $1,000 of annual income from the biggest bank.

Read more »