These excellent ASX dividend shares offer 4% to 6.7% yields

Analysts think these shares are buys for income investors.

| More on:
Man holding out Australian dollar notes, symbolising dividends.

Image source: Getty Images

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

Are you hunting for some ASX dividend shares to buy for your income portfolio in February?

If you are, then read on because listed below are three that brokers currently rate as top buys.

Here's what you need to know about them:

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share that has been tipped as a buy is HomeCo Daily Needs REIT.

It is a real estate investment trust that owns a diversified portfolio of convenience-based retail properties. This includes supermarkets, healthcare centres, and hardware stores. These are properties that tend to perform well regardless of economic conditions.

HomeCo Daily Needs REIT's geographically diverse national footprint is 86% metro-located and exposed to markets with above average population growth. It has no exposure to department stores and minimal exposure to discretionary retail and fashion. Its three largest shareholders are Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW).

The team at UBS believes the company is positioned to pay dividends per share of 8.6 cents in FY 2026 and then 8.7 cents in FY 2027. Based on its current share price of $1.29, this would mean dividend yields of 6.7% and 6.75%, respectively.

UBS has a buy rating and $1.53 price target on its shares.

Sonic Healthcare Ltd (ASX: SHL)

Over at Bell Potter, its analysts have named Sonic Healthcare as an ASX dividend share to buy.

It is a medical diagnostics company that operates laboratories and collection centres across Australia, Europe, and the United States.

Bell Potter is positive on the company and believes it is positioned to return to consistent growth. It is expecting partially franked payouts of 109 cents per share in FY 2026 and then 111 cents per share in FY 2027. Based on its current share price of $22.79, this equates to dividend yields of 4.8% and 4.9%, respectively.

Bell Potter has a buy rating and $33.30 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX dividend share that could be a buy is youth fashion retailer Universal Store.

Bell Potter is a fan of the company. It believes its growth can continue thanks to its multi-brand strategy across Universal Store, Thrills, and Perfect Stranger and growing private-label penetration.

The broker expects this to support fully franked dividends of 37.3 cents per share in FY 2026 and 41.4 cents per share in FY 2027. Based on the current share price of $8.60, this implies yields of 4.3% and 4.8%, respectively.

Bell Potter has a buy rating and $10.50 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Universal Store and Woolworths Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT, Sonic Healthcare, Universal Store, and Wesfarmers. 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

Beautiful young couple enjoying in shopping, symbolising passive income.
Dividend Investing

3 safe ASX dividend shares for low-risk investors

These are the kinds of income shares I’d be comfortable holding through different market conditions.

Read more »

A woman skips and frolics amid three stacks of gold coins with a man sitting on the tallest pile.
Dividend Investing

2 heavyweight ASX dividend stocks for reliable income

Let's have a look at what income investors can expect from these 2 solid ASX shares in 2026.

Read more »

Woman in a hammock relaxing, symbolising passive income.
Dividend Investing

1 ASX dividend stock down 4% I'd buy right now!

This business is a top pick for payouts. Here’s why…

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Dividend Investing

3 ASX dividend shares for smart investors to buy

Analysts think these shares would be smart picks 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 rate these ASX shares as top ideas for passive dividend income.

Read more »

Beautiful holiday photo showing two deck chairs close-up with people sitting in them enjoying the bright blue ocean and island view while sipping champagne and enjoying the good life thanks to Pilbara Minerals share price gains in recent times
Dividend Investing

Aussie income stocks: A once-in-a-decade chance to get richer?

Wanting to build a meaningful income? Now could be your opportunity.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

2 ASX shares to buy with dividend yields above 9%

These stocks offer investors huge yields. I like them a lot.

Read more »

Woman relaxing at home on a chair with hands behind back and feet in the air.
Dividend Investing

Buying ASX shares for passive income? Here's how Woodside, Fortescue and CBA shares stack up

Do Woodside, CBA, or Fortescue shares pay the most passive income?

Read more »