2 buy-rated ASX dividend shares to buy for 4% to 5% yields

Let's see which shares are being recommended as buys this week.

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ASX dividend shares can be a useful source of passive income, particularly when they have strong market positions, healthy cash generation, and room to keep rewarding shareholders.

With that in mind, here are two top ASX dividend shares that brokers think could be in the buy zone this month:

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Dicker Data Ltd (ASX: DDR)

Dicker Data is an ASX dividend share that has built a strong position in the technology distribution market.

The company distributes hardware, software, cloud, cybersecurity, and other technology products for many of the world's largest vendors. This gives it exposure to the ongoing digital investment needs of businesses across Australia and New Zealand.

One positive with Dicker Data is the essential nature of its role in the technology supply chain. Vendors rely on the company to reach resellers, while resellers use its platform, product range, and support to serve business customers.

This has helped Dicker Data generate solid earnings and cash flows over the years. It also has a history of paying regular dividends, which has made it a popular name with income-focused investors.

The technology sector can still be cyclical, particularly when businesses delay spending or margins come under pressure. But over the long run, demand for cloud, security, networking, and enterprise technology should continue to support the company's market opportunity.

UBS is bullish on the company and has a buy rating and $11.30 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 47 cents per share in FY 2026 and then 51 cents per share in FY 2027. Based on its current share price of $8.91, this equates to dividend yields of 5.3% and 5.7%, respectively.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre may not be the first name investors think of for dividends, but it has the potential to become an attractive income option as travel conditions normalise.

The company is one of the best-known travel businesses on the ASX, with exposure to both leisure and corporate travel. While the leisure side remains important, the corporate travel division has become a key part of the investment case.

Corporate travel can provide repeat business, scale benefits, and a stronger platform for earnings growth if travel activity continues to recover. Flight Centre has also spent recent years reshaping its cost base and improving the efficiency of its operations.

This means that as revenue grows, there is scope for a greater portion of that improvement to flow through to earnings. Stronger profits can then support higher dividends, provided management remains comfortable with the balance sheet and outlook.

Morgans is a fan of the company and recently put a buy rating and $14.50 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 41 cents per share in FY 2026 and then 47 cents per share in FY 2027. Based on its current share price of $9.88, this would mean dividend yields of 4.1% and 4.75%, 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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