ASX dividend shares have always been a favourite among Aussies seeking a steady passive income from reliable, well-established companies. By holding onto a quality stock for a long period of time, investors can benefit from the power of compounding and long-term business growth.
There are many ASX dividend shares out there which can offer this type of income. But there is one in particular which I think offers a fantastic buying opportunity right now: Sonic Healthcare Ltd (ASX: SHL).
Sonic Healthcare shares are trading in the red on Wednesday morning. At the time of writing, the shares are down 0.9% to $23 a piece.
Over the past month, the shares have climbed 8.9%. But after a steep sell-off following the company's FY25 results announcement in August, the share price is 19.13% lower than this time last year.
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Why are Sonic Healthcare shares a great ASX dividend buy today?
The ASX dividend stock is the seventh largest healthcare share on the ASX 200 Index, by market capitalisation. The company is a global leader in pathology and diagnostic imaging, operating across Australia, Europe, and the United States.
The business is well diversified and in a good position to benefit from long-term tailwinds amid an ageing population.
As a diagnostics healthcare company, demand for Sonic Healthcare's services are expected to boom in coming decades as older individuals have more need for regular and repeated pathology tests to help with any upcoming chronic illnesses.
At the same time, there is also growing awareness among other age groups about the benefits of early disease detection and preventive health screening.
When it comes to its dividends, Sonic Healthcare offers an attractive yield. In FY25, the company declared it would pay a full-year dividend of $1.07 per share to investors.
And after a tough period, the market is expecting the company's dividends to grow steadily over the next few years.
Bell Potter forecasts dividends of $1.09 per share in FY26 and $1.11 in FY27. The consensus estimate is for a dividend yield of 4.6% in FY26.
Where do analysts think the share price will go next?
Analysts at Bell Potter have said they think the ASX dividend company is ready for a return to consistent growth. They also said investors should be snapping up the shares.
The broker has a buy rating and $33.30 target price on the shares. At the time of writing, this implies a 44.8% upside for investors over the next 12 months.
Macquarie is a little less bullish on the shares. The broker has a buy rating and 12-month target price of $25.20 on the stock, although this still implies a potential 9.6% upside ahead.
