3 ASX dividend stocks to buy with $3,000 in March

Brokers think these stocks could be top picks for income investors this month.

| 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

Do you have space in your income portfolio for some ASX dividend stocks? If you do, then it could be worth checking out the three in this article.

They have recently been recommended as buys by brokers in March. Here's why they could be top picks for income investors with $3,000 to put to work in the share market:

Smiling couple sitting on a couch with laptops fist pump each other.

Image source: Getty Images

Cedar Woods Properties Limited (ASX: CWP)

Bell Potter thinks Cedar Woods could be an ASX dividend stock to buy this month.

It is one of Australia's leading property companies, owning a high-quality portfolio that is diversified by geography, price point, and product type. The broker believes that this leaves it well-positioned to be a big winner from Australia's chronic housing shortage.

Bell Potter expects this to support dividends per share of 39 cents in FY 2026 and then 41 cents in FY 2027. Based on its current share price of $8.73, this equates to 4.5% and 4.7% dividend yields, respectively.

The broker has a buy rating and $10.20 price target on its shares.

Premier Investments Ltd (ASX: PMV)

Another ASX dividend stock to consider for income is Premier Investments.

It is the owner of popular retail brands Smiggle and Peter Alexander, as well as a sizeable stake in appliance manufacturer Breville Group Ltd (ASX: BRG). These assets are consistently generating strong free cash flow, which is usually returned to shareholders in the form of dividends.

Macquarie is positive on this one, especially given its belief that the Peter Alexander brand is being significantly undervalued.

As for income, it expects fully franked dividends of 79 cents per share in FY 2026 and then 90.3 cents per share in FY 2027. Based on its current share price of $12.87, this equates to dividend yields of 6.1% and 7%, respectively.

The broker currently has an outperform rating and $16.20 price target on the shares.

Sonic Healthcare Ltd (ASX: SHL)

A final ASX dividend stock to consider according to analysts is Sonic Healthcare.

It is a global medical diagnostics company, operating laboratories and collection centres across Australia, Europe, and the United States. Its services are tied to healthcare demand rather than economic cycles, which can provide a degree of earnings resilience.

Macquarie is also positive on this one and is recommending Sonic Healthcare to clients.

The broker recently put an outperform rating and $27.50 price target on its shares.

In terms of income, Macquarie is forecasting partially franked dividends of 104 cents per share in FY 2026 and 100 cents per share in FY 2027. Based on the current share price of $23.01, this implies dividend yields of 4.5% and 4.35%, respectively.

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Premier Investments and Sonic Healthcare. 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

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

Why this ASX dividend share is a retiree's dream

I think this business could be one of the best picks for retirement.

Read more »

Australian notes and coins symbolising dividends.
Dividend Investing

How to boost your income with $50,000 of annual dividends

Aussies can create significant dividend income for themselves with ASX stocks.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Dividend Investing

3 top ASX income ideas beyond CBA and the big four banks

Let's see why these shares could be top picks for income investors looking outside the banking sector.

Read more »

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

3 ASX dividend shares to buy with 5%+ yields

Analysts think income investors should be buying these shares.

Read more »

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Communication Shares

Are Telstra shares a good deal at $5.32?

Telstra's growing share price is starting to lower its dividend yield...

Read more »

A businessman in a suit adds a coin to a pink piggy bank sitting on his desk next to a pile of coins and a clock, indicating the power of compound interest over time.
Dividend Investing

Spend $20,000 on ASX shares and get $5,000 in passive income

I can prove a 25% yield is possible.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

1 ASX dividend stock down 30% I'd buy right now

This business is trading at a great price with a good dividend yield…

Read more »

Woman laying with $100 notes around her, symbolising dividends.
Dividend Investing

How much could a $50,000 ASX share portfolio pay in dividends?

Dividend investing can turn an ASX portfolio into a growing income stream.

Read more »