The good news for investors looking for an income boost is that the Australian share market has a multitude of options.
To narrow things down, let's look at three ASX dividend stocks that experts think could be in the buy zone right now. Here's what they are recommending to clients:
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Cedar Woods Properties Limited (ASX: CWP)
The first ASX dividend stock that analysts are tipping as a buy 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 believes the company is well-placed to benefit from Australia's chronic housing shortage. It expects this to underpin fully franked dividends per share of 35 cents in FY 2026 and then 39 cents in FY 2027. Based on its current share price of $7.68, this equates to 4.6% and 5.1% dividend yields, respectively.
The broker has a buy rating and $10.00 price target on its shares.
Lottery Corporation Ltd (ASX: TLC)
Another ASX dividend stock that analysts rate as a buy is Powerball, Keno, and Tatts Lotto operator Lottery Corporation.
Its earnings are largely insulated from economic cycles. Ticket sales tend to remain steady regardless of whether consumer confidence is high or low, which supports predictable cash flows.
What could make Lottery Corporation attractive for income investors is its capital-light business model. With minimal reinvestment requirements, a large portion of earnings can be returned to shareholders as dividends. This has allowed the company to establish itself as a consistent income payer since its demerger.
UBS expects this trend to continue and is forecasting fully franked dividends per share of 17 cents in FY 2026 and then 21 cents in FY 2027. Based on its current share price of $5.14, this would mean dividend yields of 3.3% and 4.1%, respectively.
The broker has a buy rating and $6.30 price target on its shares.
Sonic Healthcare Ltd (ASX: SHL)
A third ASX dividend stock that is rated as a buy by analysts is Sonic Healthcare.
It is one of the world's leading healthcare providers with operations spanning laboratory medicine, pathology, radiology, and primary care medical services. After a tough period following the end of COVID testing, analysts at Bell Potter believe the company is positioned for sustainable growth.
This is expected to support partially franked dividends of $1.09 per share in FY 2026 and $1.11 per share in FY 2027. Based on its current share price of $21.62, this equates to dividend yields of 5% and 5.1%.
Bell Potter has a buy rating and a $28.50 price target on its shares.
