Down 40%: These high-yield ASX dividend shares are rated as buys

If you are on the hunt for ASX dividend shares to buy, then it could be worth considering the two shares in this article.

That's because brokers currently rate them as buys after they pulled back by approximately 40%.

Here's what they are recommending to income investors:

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price is down a disappointing 40% from its high. This appears to have been driven by concerns that consumer spending may be pressured by higher interest rates.

While this may be the case, the retail giant's leadership position means it is better placed than most to deal with tough trading conditions.

In addition, the team at Bell Potter believes the company can still pay some very attractive dividends in the near term.

It is forecasting fully franked dividends of 29.8 cents per share in FY 2026 and then 33.5 cents per share in FY 2027. Based on its current share price of $4.59, this would mean dividend yields of 6.5% and 7.3%, respectively.

Bell Potter also sees plenty of upside for investors over the next 12 months. It has a buy rating and $6.70 price target, which implies potential upside of almost 50% from current levels.

IPH Ltd (ASX: IPH)

Another ASX dividend share that could be a cheap buy right now is IPH.

It is an international intellectual property (IP) services company with a network of member firms working throughout 26 IP jurisdictions, with clients in more than 25 countries. Its brands include AJ Park, Griffith Hack, Pizzeys, ROBIC, Smart & Biggar, and Spruson & Ferguson.

The company notes that these brands work with a diverse client base of Fortune Global 500 companies and other multinationals, public sector research organisations, SMEs, and professional services firms.

The IPH share price is down almost 40% from its 52-week high amid concerns over difficult trading conditions. However, the team at Morgans remains positive and is recommending the company to clients.

The broker is also expecting some very big dividend yields. It is forecasting fully franked dividends of 38 cents per share in FY 2026 and then 39 cents per share in FY 2027. Based on its current share price of $3.51, this would mean dividend yields of 10.8% and 11.1%, respectively.

Morgans has a buy rating and $5.39 price target on its shares, which implies potential upside of over 50% for investors over the next 12 months.