Income investors are often on the hunt for reliable stocks with attractive dividends, and the Australian Stock Exchange (ASX) offers a broad selection. With so many dividend shares available, it can be challenging to identify the best ones. Fortunately, brokers have done the heavy lifting, analysing the market and recommending top picks for income-seeking investors.
Here’s a closer look at some highly-rated ASX dividend shares that analysts believe are worth buying right now.
1. HomeCo Daily Needs REIT (ASX: HDN)
One of the top picks is HomeCo Daily Needs REIT, a property company specialising in neighbourhood retail and large format retail assets. Its three biggest tenants are Coles Group (ASX: COL), Wesfarmers (ASX: WES), and Woolworths Group (ASX: WOW).
What makes HomeCo an attractive choice for income investors is its resilient cash flows and growth potential. Over 80% of its tenants are national, with around 75% offering click-and-collect services, benefiting from the trend of "last mile logistics." Additionally, the strategic locations of its sites in high-growth metro areas further enhance its investment appeal.
Morgans, a leading broker, expects HomeCo Daily Needs to deliver consistent dividend growth. It forecasts dividends per share of 8.5 cents in FY 2025 and 8.7 cents in FY 2026. At its current share price of $1.30, these figures translate to dividend yields of 6.5% and 6.7%, respectively. Morgans has an add rating and a price target of $1.36 on HomeCo Daily Needs REIT, making it a solid option for dividend-focused investors.
2. SRG Global Ltd (ASX: SRG)
Another dividend stock to watch is SRG Global, a diversified industrial services company offering multidisciplinary construction, maintenance, and production drilling services. With its exposure to infrastructure and mining sectors, SRG Global has become a favourite pick among analysts.
Bell Potter, another prominent broker, is optimistic about SRG's future, driven by government-stimulated construction activity and increased development in the resources sector. The broker also notes that the mining services division is expected to benefit from the anticipated growth in iron ore and gold production volumes over the next five years.
For income investors, SRG Global is expected to provide fully franked dividends of 5 cents per share in FY 2025 and 6 cents in FY 2026. With its current share price of $1.04, this would result in dividend yields of 4.8% and 5.75%, respectively. Bell Potter has a buy rating and a price target of $1.40 for SRG Global, reflecting its potential as a strong income-generating stock.
3. Clearview Wealth Ltd (ASX: CVW)
For those interested in the financial sector, Clearview Wealth Ltd could be a dividend stock to consider. Clearview Wealth is a life insurance company managing over $370 million in premiums. It has partnerships with more than 1,000 Australian Financial Services Licensees and over 4,000 financial advisers.
According to Morgans, Clearview Wealth’s shares are undervalued, especially given its strong growth prospects fueled by a comprehensive business transformation programme. The broker anticipates dividends of 3.6 cents per share in FY 2025 and 4.3 cents in FY 2026. Based on its current share price of 54 cents, this would give investors dividend yields of 6.7% and 8%, respectively. Morgans has an add rating and a price target of 81 cents, making Clearview a worthwhile consideration for dividend investors.
4. Nickel Industries Ltd (ASX: NIC)
For those seeking exposure to the metals sector, Nickel Industries could be an appealing dividend stock. Nickel Industries is a low-cost producer of nickel, primarily for the stainless steel and electric vehicle industries.
Bell Potter highlights the company’s aggressive growth profile, which is fully funded and poised to deliver strong earnings growth in the coming years. The broker expects 5 cents per share dividends in FY 2024 and FY 2025. With a current share price of 77 cents, these dividends translate to a yield of 6.5%. Bell Potter has a buy rating and a price target of $1.47, indicating a potential upside for investors.
The Australian share market offers many high-quality dividend-paying stocks, and the four stocks mentioned above—HomeCo Daily Needs REIT, SRG Global, Clearview Wealth, and Nickel Industries—stand out as top options for income-focused investors. These companies are not only expected to deliver attractive yields but also have strong growth potential, making them compelling choices for those seeking both dividends and capital appreciation. As always, it’s essential to conduct your own research or consult with a financial adviser before making any investment decisions.
