Buy these amazing ASX dividend shares for passive income

Analysts think these dividend shares could be top picks for a passive income boost.

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Key points
  • Cedar Woods is positioned to thrive amid Australia's housing shortage, with expected dividend yields of up to 4.5% by FY 2027, making it a potential buy per Bell Potter's analysis.
  • HomeCo Daily Needs REIT offers stability through essential-service retail properties, with attractive dividend yields of approximately 6.4% over the next two years and a positive outlook from UBS.
  • Universal Store's robust expansion strategy in youth fashion could yield dividends up to 5.15% by FY 2027, garnering a buy recommendation from Bell Potter for its growth potential.

Fortunately for investors that are focused on passive income, there is no shortage of opportunities on the Australian share market.

To narrow things down, let's take a look at three that brokers believe could be top buys right now.

Here's what they are recommending to clients:

A man in suit and tie is smug about his suitcase bursting with cash.

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Cedar Woods Properties Limited (ASX: CWP)

Bell Potter thinks that Cedar Woods could be an ASX dividend share to buy now.

Cedar Woods is one of Australia's leading property companies. It owns a high-quality portfolio that is diversified by geography, price point, and product type. This leaves it positioned to be a big winner from Australia's chronic housing shortage.

It is because of this that Bell Potter is so positive on its outlook. The broker expects this to support dividends per share of 35 cents in FY 2026 and then 39 cents in FY 2027. Based on its current share price of $8.65, this equates to 4% and 4.5% dividend yields, respectively.

The broker has a buy rating and $10.00 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that has been given the thumbs up by brokers is HomeCo Daily Needs REIT.

It is a property trust specialising in essential-service retail centres. Its portfolio comprises 47 assets with a market value of $4.9 billion. This includes supermarkets, pharmacies, healthcare clinics, and other everyday-needs retailers that typically hold long, stable leases.

The company's focus on essential retail makes this REIT relatively resilient to economic swings, and the cashflows have historically supported solid distributions.

Speaking of which, UBS is forecasting dividends of 9 cents per share in FY 2026 and again in FY 2027. Based on its current share price of $1.40, this would mean sizeable dividend yields of approximately 6.4% for both years.

UBS currently has a buy rating and $1.53 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Finally, Universal Store could be a third ASX dividend share to buy now according to brokers.

It is a youth-focused fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.

Bell Potter is positive on the company. It highlights that the company is executing very well on its national store rollout and private label expansion strategy.

It believes this will underpin fully franked dividends of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.05, this equates to dividend yields of 4.6% and 5.15%, respectively.

Bell Potter has a buy rating and $10.50 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 HomeCo Daily Needs REIT and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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