The Australian share market is a great place to build a passive income.
But which ASX dividend shares could be in the buy zone right now? Let's look at three that analysts are tipping as buys:
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Cedar Woods Properties Limited (ASX: CWP)
The first ASX dividend share that could be 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 39 cents in FY 2026 and then 41 cents in FY 2027. Based on its current share price of $7.19, this would mean dividend yields of 5.4% and 5.7%, respectively.
The broker has a buy rating and $10.20 price target on its shares.
Premier Investments Ltd (ASX: PMV)
Another ASX dividend share that is being tipped as a buy is Premier Investments.
It owns brands such as Smiggle and Peter Alexander and holds a significant investment portfolio. Like many retailers, it has faced a tough consumer environment, which has dampened near-term earnings expectations.
But analysts at Macquarie remain positive, largely due to the strength of the Peter Alexander brand.
They are expecting the company to pay fully franked dividends of 95.2 cents per share in FY 2026 and then 97.4 cents per share in FY 2027. Based on its current share price of $12.53, this would mean generous dividend yields of 7.6% and 7.8%, respectively.
Macquarie has an outperform rating and $16.90 price target on its shares.
Sonic Healthcare Ltd (ASX: SHL)
A third ASX dividend share 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.
It has been going through a tough period, but analysts at Bell Potter believe the company is now 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 $19.93, this equates to dividend yields of 5.45% and 5.55%, respectively.
Bell Potter has a buy rating and $28.75 price target on its shares.
