Thankfully for income investors, there are plenty of ASX dividend shares to choose from on the local share market.
But which ones could be top buys right now? Let's take a look at three that analysts are recommending to clients right now. They are as follows:
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Coles Group Ltd (ASX: COL)
The first ASX dividend share that analysts are tipping as a buy is Coles Group.
It is of course one of Australia's largest supermarket chains, benefitting from the kind of steady, recession-resistant demand that makes for dependable cashflow.
The team at Morgan Stanley is very positive on the company's outlook and believes it is well-placed to continue growing its dividend. The broker is forecasting fully franked dividends of 83 cents per share in FY 2026 and then 90 cents per share in FY 2027. Based on its current share price of $20.77, this would mean dividend yields of 4% and 4.3%, respectively.
Morgan Stanley currently has an overweight rating and $26.50 price target on its shares.
GQG Partners Inc. (ASX: GQG)
Another ASX dividend share that has been given the thumbs up by analysts is GQG Partners. It is a US-based fund manager with approximately US$166 billion under management.
The team at Macquarie remains positive on the company despite the poor performance of its funds. It thinks investors should be buying the dip in its share price, especially given the big dividend yields on offer with its shares.
Speaking of which, the broker is forecasting the equivalent of dividends per share of 22.6 cents per share in FY 2025 and then 22.9 cents per share in FY 2026. Based on its current share price of $1.80, this represents dividend yields greater than 12% for both years.
Macquarie currently has an outperform rating and $2.50 price target on its shares.
HomeCo Daily Needs REIT (ASX: HDN)
A third ASX dividend share that could be a buy for income investors is the HomeCo Daily Needs REIT.
It is a real estate investment trust (REIT) that focuses on convenience-based retail centres. This includes supermarkets, pharmacies, medical clinics, and pet stores. Essentially, its focus is on assets that deal with daily needs and have stable tenants and long leases.
UBS is positive on this one. It expects the company to pay dividends of 8.6 cents per share in FY 2026 and then 8.7 cents per share FY 2027. Based on its current share price of $1.37, this would mean dividend yields of 6.3% and 6.4%, respectively.
The broker currently has a buy rating and $1.53 price target on its shares.
