There are plenty of quality options for income investors on the Australian share market. This can make it hard to decide which ASX dividend shares to buy for your portfolio.
However, to narrow things down, I have picked out a couple of dividend shares that analysts are tipping as buys this month. Here's what they are saying about them:
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Centuria Industrial REIT (ASX: CIP)
The first ASX dividend share that could be a top option for passive income is Centuria Industrial.
It is an industrial-focused property company that owns a portfolio of high-quality industrial assets. At the last count, they were worth $3.8 billion with a 5.26% portfolio capitalisation rate.
The team at UBS is positive on Centuria Industrial. This is due to the resilience of its income profile, which it feels is attractive in the current environment where higher property expenses are offsetting inflation benefits.
As for dividends, UBS is expecting the company to pay dividends per share of 16 cents in both FY 2024 and FY 2025. Based on the current Centuria Industrial share price of $3.06, this represents yields of 5.2% for both years.
UBS has a buy rating and a $3.71 price target on the company's shares.
Telstra Group Ltd (ASX: TLS)
Another ASX dividend share for income investors to look at is Telstra. It is of course the nation's largest telecommunication company.
Analysts at Goldman Sachs are bullish on the telco giant. They responded to its FY 2023 results by retaining their buy rating with a $4.70 price target.
The broker believes that the "low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive."
Speaking of dividends, Goldman is forecasting fully franked dividends per share of 18 cents in FY 2024 and 20 cents in FY 2025. Based on the current Telstra share price of $4.02, this will mean yields of 4.5% and 5%, respectively, for investors.
