There are plenty of ASX dividend shares to choose from on the Australian share market.
To narrow things down, let's take a look at three that brokers rate as buys. They are as follows:
The team at Bell Potter thinks that Centuria Industrial REIT could be a great pick for income investors. It is a pure-play industrial property trust that owns a high-quality portfolio of warehouses, logistics hubs, and distribution centres across Australia.
It appears well-placed for growth in the coming years thanks to strong demand for industrial property from e-commerce, supply chain optimisation, and manufacturing.
Bell Potter is forecasting dividends per share of 16.3 cents in FY 2025 and then 16.8 cents in FY 2026. Based on its current share price of $3.14, this equates to dividend yields of 5.2% and 5.35%, respectively.
The broker has a buy rating and $3.35 price target on its shares.
Over at Goldman Sachs, its analysts think that Rio Tinto could be an ASX dividend share to buy.
The broker is bullish on the mining giant due to its attractive relative valuation, strong free cash flow, and good dividend yield. Goldman highlights that Rio Tinto has an "FCF/dividend yield of ~6% in 2025E and ~7%/~6% in 2026E, driven by our bullish view on aluminium and copper (~45-50% of group EBITDA by 2026)."
It expects this to underpin fully franked dividends of US$3.64 (A$5.59) per share in FY 2025 and US$3.74 (A$5.74) per share in FY 2026. Based on the current Rio Tinto share price of $109.60, this would mean dividend yields of 5.1% and 5.2%, respectively.
Goldman Sachs has a buy rating on Rio Tinto's shares with a price target of $140.80.
A third ASX dividend share that could be a buy is Telstra. It is of course Australia's largest telco operator.
Macquarie is a big fan of Telstra. In response to its new Connected Future 30 strategy, the broker said: "Despite execution risks from software-defined networking, ROIC growth and focus on the core competitive advantage in network and connectivity signals operating leverage and momentum."
As for income, it is now forecasting fully franked dividends per share of 19.9 cents in FY 2025 and then 22 cents in FY 2026. Based on its current share price of $4.87, this equates to dividend yields of 4.1% and 4.5%, respectively.
Macquarie has an outperform rating and $5.28 price target on its shares.
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