3 ASX dividend shares for smart investors to buy

Analysts think these shares would be smart picks for income investors.

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There are a lot of ASX dividend shares to choose from on the Australian share market.

Three smart picks according to analysts are named below. Here's what they are expecting from them:

Cedar Woods Properties Limited (ASX: CWP)

The first ASX dividend share that could be a buy according to analysts is Cedar Woods.

It is one of Australia's leading property developers with a portfolio that is diversified by geography, price point, and product type. This includes subdivisions in emerging residential communities, high-density apartments, and townhouses in inner-city neighbourhoods.

Bell Potter is a big fan of Cedar Woods. It believes the company is well-positioned to benefit from Australia's chronic housing shortage.

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 $8.09, this equates to 4.3% and 4.7% dividend yields, respectively.

Bell Potter has a buy rating and $10.00 price target on its shares.

Jumbo Interactive Ltd (ASX: JIN)

Another ASX dividend share that could be a smart buy according to analysts is Jumbo Interactive.

It is an online lottery ticket seller and lottery platform provider, best known for its Oz Lotteries app and Powered by Jumbo platform.

The team at Macquarie believes it is positioned to reward shareholders with fully franked dividends of 39.5 cents per share in FY 2026 and then 54 cents per share in FY 2027. Based on its current share price of $10.26, this would mean dividend yields of 3.85% and 5.25%, respectively.

The broker currently has an outperform rating and $14.60 price target on its shares.

Rural Funds Group (ASX: RFF)

A third and final ASX dividend share for smart investors to look at is Rural Funds.

It is a property company that owns agricultural assets such as cattle properties, vineyards, and cropping land. Rural Funds leases these properties to high-quality tenants on long-term agreements with periodic rental increases built in.

This gives Rural Funds great visibility on its future earnings and has allowed it to grow its dividend at a consistent rate for many years.

Bell Potter is expecting the company to reward shareholders with an 11.7 cents per share dividend in both FY 2026 and FY 2027. Based on its current share price of $2.03, this would mean attractive 5.8% dividend yields.

The broker has a buy rating and $2.45 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Rural Funds Group. The Motley Fool Australia has recommended Jumbo Interactive. 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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