Thankfully for income investors, there are lots of ASX dividend shares to choose from on the Australian share market.
But which ones could be buys this week? To narrow things down, let's look at three that analysts rate as buys. They are as follows:
The first ASX dividend share that could be a buy for income investors is HomeCo Daily Needs. It is a property company with a focus on neighbourhood retail, large format retail, and health and services.
Morgans is a big fan of the company. Particularly given its shift in focus from large format retail to daily needs. It appears to believe this leaves it well-placed for growth in the coming years. The broker currently has an add rating and $1.36 price target on its shares.
In respect to income, Morgans is forecasting dividends per share of 8.5 cents in FY 2025 and then 8.7 cents in FY 2026. Based on the current HomeCo Daily Needs share price of $1.26, this will mean dividend yields of 6.75% and 6.9%, respectively.
Another ASX dividend share that could be a buy is Telstra. It is of course Australia's leading telco.
Telstra had a difficult few years following the arrival of the NBN. But those days are well and truly behind the telco and it is currently in a period of solid and sustainable growth thanks largely to its mobile business.
Goldman Sachs thinks that this makes Telstra an attractive investment option. It recently put a buy rating and $4.35 price target on its shares.
As for dividends, the broker is forecasting fully franked dividends of 19 cents per share in FY 2025 and then 20 cents per share in FY 2026. Based on the current Telstra share price of $3.86, this represents dividend yields of 4.9% and 5.1%, respectively.
Universal Store could be a third ASX dividend share to buy this week. It is the youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.
Morgans is a fan of the company and recently put an add rating and $8.10 price target on its shares. It was pleased to see that "strong momentum seen in 2H has continued into the first 7 weeks of FY25, with double digit like-for-like (LFL) growth across all brands."
The broker believes this leaves Universal Store well-positioned to grow its dividend again in FY 2025. It is expecting fully franked dividends per share of 33 cents in FY 2025 and then 37 cents in FY 2026. Based on the current Universal Store share price of $7.71, this will mean yields of 4.3% and 4.8%, respectively.
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