There are plenty of options out there for income investors to choose from.
To narrow things down, let's look at three ASX dividend shares with 5% to 7% dividend yields that brokers rate as buys:
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Cedar Woods Properties Limited (ASX: CWP)
The first ASX dividend share to look at is Cedar Woods Properties.
It is a property developer with a diversified portfolio across different locations, price points, and product types. This gives it exposure to a broad range of buyers at a time when Australia's housing shortage remains a major structural issue.
Bell Potter is positive on the company and believes its portfolio leaves it well placed to benefit from ongoing demand for new housing.
That could also support attractive dividends. The broker expects Cedar Woods to pay dividends per share of 38 cents in FY 2026 and 41 cents in FY 2027. Based on the current share price of $6.64, this implies dividend yields of 5.7% and 6.2%, respectively.
Bell Potter has a buy rating and $9.65 price target on Cedar Woods shares.
Premier Investments Ltd (ASX: PMV)
Another ASX dividend share that brokers are bullish on is Premier Investments.
It owns the Smiggle and Peter Alexander retail brands, as well as a valuable stake in Breville Group Ltd (ASX: BRG). These assets have historically generated strong cash flows, which has helped the company return capital to shareholders through dividends.
The good news is that Macquarie expects this trend to continue despite the challenging retail backdrop.
The broker expects the company to pay fully franked dividends of 95.2 cents per share in FY 2026 and 97.4 cents per share in FY 2027. Based on its current share price of $13.89, that represents dividend yields of 6.9% and 7%, respectively.
Macquarie has an outperform rating and $16.90 price target on the shares.
Sonic Healthcare Ltd (ASX: SHL)
A third ASX dividend stock to consider is Sonic Healthcare.
It is a global medical diagnostics business with operations across Australia, Europe, and the United States.
Its laboratories and collection centres provide services that are tied to healthcare demand, rather than short-term consumer spending. That can give the business a more defensive earnings profile than many cyclical companies.
Bell Potter is also positive on Sonic Healthcare and believes it is well-placed for a return to growth.
On the income front, the broker is forecasting partially franked dividends of 109 cents per share in FY 2026 and 111 cents per share in FY 2027. Based on the current share price of $20.28, this implies dividend yields of 5.4% and 5.5%, respectively.
Bell Potter currently has a buy rating and $28.75 price target on its shares.
