Fortunately for income investors, there are lots of ASX dividend shares to choose from on the local market.
To narrow things down, let's take a look at two that Morgans is bullish on right now.
Here's what the broker is recommending to clients:
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CAR Group Limited (ASX: CAR)
This auto listings company has been named as a buy by analysts at Morgans.
It feels that its shares are trading at a level that has created an attractive entry point for investors. The broker said:
CAR's 1H26 result was strong overall, in our view, and was largely in line with consensus (Visible Alpha) expectations. CAR reported double-digit percentage revenue and EBITDA growth in its key offshore markets (North America, Latam and Korea), whilst Australia revenue growth remained sound (~+8% vs the pcp). We make minor changes to our FY26 assumptions.
CAR is trading on ~22x FY27F PE, which we view as an attractive entry point given its double-digit EPS growth profile. We move to a BUY recommendation with a $35.20 PT.
Morgans expects fully franked dividends of 89.5 cents per share in FY 2026 and then 99 cents per share in FY 2027. Based on the current share price of $25.69, this would mean dividend yields of 3.5% and 3.9%, respectively.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Another ASX dividend share that has been named as a buy is investment management company Pinnacle.
While its half-year results were softer than expected, the broker remains positive and sees lots of value in its shares at current levels. It said:
PNI's 1H26 NPAT (~A$67m, -11% on the pcp) came in -4% below consensus, but it was more in line excluding one-offs (e.g. mark-to-market investment impacts). Overall, we saw the 1H26 result as compositionally stronger than the headline numbers suggested, and positively accompanied with a move-the-dial acquisition.
We reduce FY26F EPS by -7% on a softer-than-expected 1H26 "reported" result, and dilution from the PAM equity issue. Conversely, FY27F EPS rises +8% on PAM earnings benefits and a broader review of our assumptions. Our price target falls to A$23.21 (from A$26.30). We move to a BUY recommendation (previously Accumulate) with >20% upside existing to our PT.
Morgans is forecasting fully franked dividends of 63 cents per share in FY 2026 and then 80 cents per share in FY 2027. Based on its current share price of $15.10, this would mean dividend yields of 4.2% and 5.3%, respectively.
