Why Telstra and these ASX dividend shares could be top buys

Analysts think these shares are buys for income investors.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you are on the hunt for some new additions to your income portfolio, then it could be worth checking out the shares in this article.

These three ASX dividend shares have been named as buys by analysts and tipped to provide attractive yields in the near term. Here's what they are recommending:

man using a mobile phone

Image source: Getty Images

Telstra Group Ltd (ASX: TLS)

Telstra remains one of the most widely held dividend shares on the ASX, and for good reason.

As Australia's largest telecommunications provider, the company benefits from essential infrastructure, a large customer base, and predictable cash flows. Demand for mobile and data services tends to be resilient across economic cycles, which supports ongoing dividend payments.

Macquarie is positive on the telco giant and currently has an outperform rating on its shares with a $5.04 price target.

As for income, the broker is forecasting fully franked dividends of 20 cents per share in FY 2026 and 21 cents per share in FY 2027. Based on its current share price of $4.81, this would mean dividend yields of 4.15% and 4.4%, respectively.

For investors seeking stability and dependable dividends, Telstra could be a core holding in a balanced income portfolio.

Jumbo Interactive Ltd (ASX: JIN)

Jumbo Interactive is another ASX dividend share that has been named as a buy.

It operates online lottery ticketing platforms, including Oz Lotteries, and benefits from recurring customer activity and strong cash generation. With limited reinvestment requirements, a large portion of earnings can be returned to shareholders.

Macquarie is bullish on Jumbo Interactive, giving its shares an outperform rating and $14.60 price target.

On the income side, the broker expects fully franked dividends of 39.5 cents per share in FY 2026 and 54 cents per share in FY 2027. From its current share price of $11.22, this represents dividend yields of 3.5% and 4.8%, respectively.

Lovisa Holdings Ltd (ASX: LOV)

Finally, Lovisa is not your typical ASX dividend share, but its cash generation has allowed it to deliver both growth and income.

The fast-fashion jewellery retailer has successfully expanded its store network globally while maintaining strong margins and disciplined capital management. This has enabled the company to return capital to shareholders even while continuing to grow.

Morgans thinks its shares are good value and has put a buy rating and $40.00 price target on them.

With respect to income, the broker is forecasting dividends of 92 cents per share in FY 2026 and 114 cents per share in FY 2027. Based on its current share price of $29.98, this would mean dividend yields of 3.1% and 3.8%, respectively.

Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive, Lovisa, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended Jumbo Interactive and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

View of a business man's hand passing a $100 note to another with a bank in the background.
Dividend Investing

Here is what this ASX energy giant is paying income investors in 2026

Woodside's dividend is one of the most watched on the ASX. Here is exactly what shareholders are receiving this year…

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

These ASX dividend stocks offer yields of up to 12%

Bell Potter rates these stocks as buys for income investors.

Read more »

A middle aged man holds a plumbing plunger in one hand and a piece of toilet pipe in the other, with an exasperated look on his face.
Dividend Investing

Buying Wesfarmers shares today? Here's the dividend yield you'll get

Wesfarmers is a perennial favourite for income investors.

Read more »

A woman wearing glasses and a black top smiles broadly as she stares at a money yarn full of coins representing the rising JB Hi-Fi share price and rising dividends over the past five years
Dividend Investing

Don't want to rely on your wage? Build a second income with these ASX shares

I think these businesses are great options for passive income.

Read more »

Man holding fifty Australian Dollar banknotes in his hands, symbolising dividends.
Dividend Investing

$1,000 buys 238 shares in an incredibly reliable ASX dividend stock

This business is consistently giving investors a dividend increase.

Read more »

View of a business man's hand passing a $100 note to another with a bank in the background.
Dividend Investing

Buy these ASX dividend shares with 6%+ yields

Let's see why these dividend shares are rated highly by analysts.

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

These ASX dividend shares keep giving investors a pay rise

These businesses are leading examples of regular dividend growth.

Read more »

Concept image of a hand holding up an umbrella in a rain storm.
Dividend Investing

$10,000 buys 237 shares in this trusty ASX dividend stock

This stock has increased its dividend every year since 1998.

Read more »