Commonwealth Bank of Australia (ASX: CBA) shares are a popular option for income investors, but with a trailing dividend yield of just 3.1%, they may not be the best.
Especially when most analysts believe that the big four bank's shares are overvalued and destined to fall from current levels.
But don't worry, because there are plenty of quality alternatives for investors to choose from with bigger dividend yields and potential for plenty of upside.
Here's what analysts are recommending to income investors:
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Harvey Norman Holdings (ASX: HVN)
The first ASX dividend share that could be worth considering is Harvey Norman.
It is of course one of Australia's largest retailers with a growing network of superstores across Australia and the world. It also owns one of the largest retail property portfolios, which provides both stability and an additional layer of asset backing for shareholders.
Bell Potter is bullish on the retailer and believes it is positioned to pay 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 $7.06, this would mean dividend yields of 4.4% and 5%, respectively.
The broker has a buy rating and $8.30 price target on the company's shares.
Sonic Healthcare Ltd (ASX: SHL)
Another ASX dividend share that Bell Potter rates highly is Sonic Healthcare.
It is a medical diagnostics company with laboratories and collection centres across Australia, Europe, and the United States.
After a tough period following the end of COVID testing, Bell Potter thinks the company is ready for a return to consistent growth.
It is expecting this to support partially franked dividends of 109 cents per share in FY 2026 and then 111 cents per share in FY 2027. Based on its current share price of $22.98, this equates to dividend yields of 4.75% and 4.8%, respectively.
Bell Potter has a buy rating and $33.30 price target on its shares.
Transurban Group (ASX: TCL)
A third ASX dividend share that could be a good alternative to CBA shares is Transurban.
It is a toll road giant that operates a network of important roads across Australia and North America. This includes the newly opened West Gate Tunnel in Melbourne, the Eastern Distributor in Sydney, and AirportlinkM7 in Brisbane.
The team at Citi believes the company's portfolio is positioned to pay 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 $14.42, this equates to dividend yields of 4.8% and 5.1%, respectively.
Citi has a buy rating and $16.10 price target on its shares.
