4 ASX dividend shares to buy instead of CBA

MotleyFool
2024-10-23

Commonwealth Bank of Australia (ASX: CBA) is undoubtedly one of the highest quality banks in the world.

However, with its shares up approximately 45% over the past 12 months, Australia's banking giant looks significantly overvalued at current levels. In addition, the dividend yield on offer now is below average at just 3.3%.

As a result, income investors might want to look beyond CBA and consider the four ASX dividend shares listed below. Here's what analysts are saying about them:

Endeavour Group Ltd (ASX: EDV)

Goldman Sachs thinks that Endeavour Group could be an ASX dividend share to buy. It is the Australian alcohol retail giant behind store brands such as Dan Murphy's and BWS.

The broker currently has a buy rating and $6.20 price target on its shares.

As for dividends, it is forecasting fully franked dividends of 22 cents per share in FY 2025 and then 24 cents per share in FY 2026. Based on the current Endeavour share price of $4.75, this will mean dividend yields of 4.6% and 5%, respectively.

IPH Ltd (ASX: IPH)

Goldman Sachs also thinks that leading intellectual property solutions company IPH could be an ASX dividend share to buy now. It has a buy rating and $7.50 price target on its shares.

The broker expects IPH's defensive earnings and organic growth to underpin fully franked dividends per share of 36 cents in FY 2025 and then 39 cents in FY 2026. Based on the current IPH share price of $5.36, this represents yields of 6.7% and 7.3%, respectively.

Rural Funds Group (ASX: RFF)

A third ASX dividend share that has been tipped as a buy is Rural Funds. It is a property company that owns a portfolio of high-quality assets across a number of agricultural industries.

Analysts at Bell Potter are positive on the company and have a buy rating and $2.50 price target on its shares.

In respect to dividends, the broker is expecting dividends per share of 11.7 cents in FY 2025 and then 12.2 cents in FY 2026. Based on the current Rural Funds share price of $1.91, this will mean yields of 6.1% and 6.4%, respectively.

SRG Global Ltd (ASX: SRG)

A final ASX dividend share that analysts rate as buys is SRG Global. It is a diversified industrial services group that provides multidisciplinary construction, maintenance, production drilling and geotechnical services.

Bell Potter is also positive on this company and has a buy rating and $1.40 price target on its shares.

The broker believes strong demand for its services will underpin fully franked dividends of 5 cents in FY 2025 and then 6 cents in FY 2026. Based on its current share price of $1.12, this will mean dividend yields of 4.5% and 5.35%, respectively.

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