One of the best ways for income investors to grow wealth is through buy and hold investing in the share market.
But which ASX dividend shares could be great long term picks? Let's take a look at three that analysts rate as buys and could be great options for a $7,000 investment. They are as follows:
Accent Group could be an ASX dividend share to buy and hold.
It is a footwear-focused retailer that owns and operates leading brands like Stylerunner, The Athlete's Foot, Hype DC, and Platypus. It has also just started to roll out the Sports Direct brand across the ANZ region.
Its shares have been hammered this year after consumer spending weakness weighed on its performance. However, this is a temporary headwind which will clear in time. Especially with interest rates falling. As a result, now could be an opportune time to load up on its shares.
Bell Potter is a fan of the company and has a buy rating and $1.90 price target on its shares.
As for income, it is forecasting fully franked dividends of 7.4 cents per share in FY 2025 and then 9.5 cents per share in FY 2026. Based on its current share price of $1.51, this represents dividend yields of 4.9% and 6.3%, respectively.
Another ASX dividend share that could be a great buy and hold option for the $7,000 is Rural Funds.
It is a real estate investment trust (REIT) with a focus on Australian agricultural assets. This includes assets across almonds, poultry, macadamias, cattle, cropping, viticulture and water.
Bell Potter thinks that its shares are being undervalued by the market. As a result, it recently put a buy rating and $2.45 price target on them.
Even better news is that the broker expects some big dividend yields in the coming years. It is forecasting dividends of 11.7 cents per share in FY 2025 and then 12.2 cents per share in FY 2026. Based on the current Rural Funds share price of $1.82, this will mean yields of 6.4% and 6.7%, respectively.
Finally, Transurban could be a great ASX dividend share to buy for the long term.
It is toll road operator with assets across Sydney, Melbourne, Brisbane, and North America. Its business model is underpinned by long-dated concessions and regular price increases – many of which are indexed to inflation. The latter means that Transurban has a highly predictable revenue stream and dividend outlook.
The team at UBS is positive on the company and has a buy rating and $14.85 price target on its shares.
As for payouts, it is forecasting dividends per share of 65 cents in FY 2025 and then 69 cents in FY 2026. Based on its current share price of $13.38, this would mean dividend yields of 4.85% and 5.15%, respectively.
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