Thankfully for Australian income investors, the local market is home to countless ASX dividend shares.
But with so much choice, it can be hard to decide which ones to buy over others.
To narrow things down, let's take a look at three that are highly rated and expected to offer great dividend yields. They are as follows:
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APA Group (ASX: APA)
The first ASX dividend share to look at is APA Group.
It is a leading owner and operator of energy infrastructure, generating stable, regulated cash flows that are largely insulated from economic ups and downs.
APA Group's portfolio spans gas pipelines, electricity transmission assets, and power generation, with long-term contracts that provide excellent visibility over future earnings. This stability has allowed APA to steadily grow its distributions over time. So much so, it has gone almost two decades with consecutive annual dividend increases.
And this trend is expected to continue in FY 2026, with management guiding to an increase to 58 cents per share. Based on its current share price of $8.58, this would mean a dividend yield of 6.8%.
HomeCo Daily Needs REIT (ASX: HDN)
Another ASX dividend share for income investors to consider is HomeCo Daily Needs REIT.
It is a REIT built around owning properties people rely on regardless of economic conditions.
HomeCo Daily Needs REIT's portfolio is focused on convenience-based retail and essential services, including neighbourhood shopping centres, large-format retail, health services, and government buildings. Its major tenants include Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES).
Because the REIT's assets are leased on long-term agreements, management has good visibility on its earnings and is able to provide dividend guidance each year.
Speaking of which, it is guiding to a dividend of 8.6 cents per share in FY 2026. Based on its current share price of $1.36, this represents a 6.3% dividend yield at current prices.
Rural Funds Group (ASX: RFF)
Finally, Rural Funds Group could be a top pick for income investors.
It offers exposure to Australian agricultural properties through a diversified portfolio of farms across cattle, cropping, almonds, vineyards, and macadamias. These are leased to high-quality operators on long-term contracts.
Many include inflation-linked rental increases, which can help protect real income over time. And with demand for food production a long-term structural tailwind, this makes farmland a scarce and valuable asset class.
The company plans to pay an 11.73 cents per share dividend in FY 2026. Based on its current share price of $2.02, this represents an attractive 5.8% dividend yield.
