3 ASX dividend shares to buy with $5,000

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

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:

Man holding out Australian dollar notes, symbolising dividends.

Image source: Getty Images

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

Male hands holding Australian dollar banknotes, symbolising dividends.
Dividend Investing

How many BHP shares do I need to buy for $10,000 of passive income?

The mining giant is one of the Australian share market's biggest dividend payers.

Read more »

Man with his hands out as if pondering his options.
Exchange-Traded Funds (ETFs)

Do you own this ASX dividend ETF? Fundie explains why 'we aren't fans'

This ASX ETF aims to maximise income using covered call options.

Read more »

Australian dollar notes in a nest, symbolising a nest egg.
Dividend Investing

2 ASX dividend shares with yields above 7%

These businesses are providing significant passive income.

Read more »

A man closely watches a clock.
Dividend Investing

17 ASX shares going ex-dividend next week

Washington H. Soul Pattinson, Perenti, Civmec, and other ASX shares are set to go ex-dividend.

Read more »

A businessman's hands surround a circular graphic with a United States flag and dollar signs.
Dividend Investing

IVV ETF and other iShares funds are paying dividends today. Here's how much

Aussie investors love the IVV ETF, which tracks the US benchmark S&P 500 Index.

Read more »

Elderly woman typing on a laptop.
Dividend Investing

Wesfarmers vs Coles: Which dividend share is better for retirees?

Wesfarmers and Coles are ASX dividend titans for retirees, but I think one shades the other right now.

Read more »

House models with REIT written on one.
Dividend Investing

3 ASX real estate investment trusts paying a dividend yield of more than 7%

If you're after income, these shares could be worth a look.

Read more »

Small kid giving a thumbs up.
Dividend Investing

$4,000 buys 3,065 shares in an impressively reliable ASX dividend stock

This investment is paying incredibly impressive dividends.

Read more »