There are plenty of ASX dividend shares out there for passive income investors to choose from.
To narrow things down, let's look at three excellent options that brokers rate as buys. They are as follows:
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Cedar Woods Properties Limited (ASX: CWP)
Bell Potter thinks that Cedar Woods could be an ASX dividend share to buy.
It is one of Australia's leading property developers with a portfolio that is diversified by geography, price point, and product type.
The broker is positive on Cedar Woods due to it being well-positioned to benefit from Australia's chronic housing shortage.
It is expecting this to underpin dividends per share of 35 cents in FY 2026 and then 39 cents in FY 2027. Based on its current share price of $8.56, this equates to 4.1% and 4.6% dividend yields, respectively.
Bell Potter has a buy rating and $10.00 price target on its shares.
Rural Funds Group (ASX: RFF)
Another ASX dividend share that gets the thumbs up from analysts is Rural Funds.
It is a property company that owns agricultural assets such as cattle properties, vineyards, and cropping land. These properties are typically leased to high-quality tenants on long agreements with built-in rental increases.
This provides Rural Funds with great visibility on its future earnings and has supported solid earnings and dividend growth over the past decade.
Bell Potter is positive on the company's outlook. It expects Rural Funds to pay dividends of 11.7 cents per share in both FY 2026 and FY 2027. Based on its current share price of $1.97, this would mean dividend yields of 5.9% for both years.
The broker currently has a buy rating and $2.45 price target on its shares.
Telstra Group Ltd (ASX: TLS)
Telstra could be an ASX dividend share to buy according to analysts. It is of course Australia's telecoms leader.
It could be an attractive option due to its defensive cash flows, which are generated by its mobile, broadband, and network services. These are the kinds of essential services that Australians rely on every day for connectivity.
In addition, the company recently announced its Connected Future 30 plan, which aims to deliver strong and sustainable long-term earnings.
Macquarie is positive on the company and has an outperform rating and $5.04 price target on its shares.
As for income, the broker is forecasting fully franked dividends of 20 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $4.87, this would mean dividend yields of 4.1% and 4.3%, respectively.
