3 buy-rated ASX dividend shares forecast to yield 5%+ in FY 2027

Brokers think these shares could be top picks for income investors.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Australian share market remains a great hunting ground for passive income.

While bank shares often receive plenty of attention from dividend investors, there are many other options offering attractive forecast dividend yields.

Some of these shares also provide exposure to very different parts of the economy, which can be useful for investors trying to build a more diversified income stream.

Here are three ASX dividend shares that are rated as buys by brokers and forecast to yield more than 5% in FY 2027.

Beautiful young couple enjoying in shopping, symbolising passive income.

Image source: Getty Images

APA Group (ASX: APA)

The first ASX dividend share to look at is APA Group.

APA owns energy infrastructure assets, including gas pipelines and related infrastructure that help keep energy moving across Australia.

That gives the company an important role in the economy. Its assets support households, industry, power generation, and energy security, which can make its cash flows attractive to income-focused investors.

Citi is bullish on the company. It has a buy rating and $11.10 price target on APA's shares.

As for income, the broker expects APA to pay a dividend of 59 cents per share in FY 2027. Based on the current share price of $10.31, this represents a forward dividend yield of approximately 5.7%.

Charter Hall Long WALE REIT (ASX: CLW)

Another ASX dividend share that could be attractive for income investors is the Charter Hall Long WALE REIT.

This property trust owns a portfolio of leased assets across Australia, with a focus on long weighted average lease expiry properties.

That long-lease structure is the key part of the income story. Rather than relying heavily on short-term leasing conditions, Charter Hall Long WALE REIT is built around contracted rental income from a portfolio of tenants across different sectors.

Citi also sees value here. It has a buy rating and $4.10 price target on its shares.

The broker expects Charter Hall Long WALE REIT to pay a dividend of 25.7 cents per share in FY 2027. Based on the current share price of $3.75, this equates to a forecast yield of approximately 6.9%.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX dividend share to consider is Universal Store.

It is a youth-focused fashion retailer with a portfolio of brands and stores targeting younger shoppers.

Retail shares can be cyclical, but Universal Store has built a strong position in its niche. Its store network, brand mix, and understanding of youth fashion trends give it a point of difference in a competitive market.

Morgans is positive on the company. It has a buy rating and $9.50 price target on Universal Store's shares.

With respect to income, the broker expects the company to pay a fully franked dividend of 46 cents per share in FY 2027. Based on its current share price of $7.34, this represents a forward dividend yield of approximately 6.3%.

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Apa Group. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Woman holding $50 and $20 notes.
Dividend Investing

8 ASX shares going ex-dividend next week

Commonwealth Bank, Resmed, and AMP are among the ASX shares with ex-dividend dates next week.

Read more »

Woman relaxing on her phone on her couch, symbolising passive income.
Dividend Investing

Why I'd buy Telstra and these ASX dividend shares for passive income

These shares offer the type of qualities I would want from passive income investments.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Dividend Investing

2 ASX dividend shares I'd buy today for passive income

These ASX dividend shares can deliver a strong passive income investors.

Read more »

Australian notes and coins symbolising dividends.
Communication Shares

Everything you need to know about the Telstra dividend

Owners of Telstra shares can look forward to another good dividend.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Bank Shares

Revealed: The ASX bank share with the highest dividend yield today

The highest-yielding bank right now might surprise you.

Read more »

An older gentleman leans over his partner's shoulder as she looks at a tablet device while seated at a table.
Dividend Investing

134,814 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension

I’d say this ASX stock is more appealing than the Age Pension.

Read more »

A man in a sweatshirt holds two different phones to compare telco services.
Dividend Investing

How many Telstra shares do I need to buy to generate $10,000 in passive income?

Telstra pays two fully-franked dividends per year.

Read more »

A pink piggybank sits in a pile of autumn leaves.
Dividend Investing

How much passive income can I earn off the big four bank dividends in the next year?

Which bank stock is the best for passive income?

Read more »