4 excellent ASX dividend shares to buy in May

Analysts have put buy ratings on these stocks and are forecasting attractive dividend yields.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A new month is upon us, so what better time to look at your income portfolio to see if there are any additions you could make?

To help you on your way, let's take a look at four ASX dividend shares that analysts currently rate as buys. They are as follows:

A woman relaxes on a yellow couch with a book and cuppa, and looks pensively away as she contemplates the joy of earning passive income.

Image source: The Motley Fool

Aurizon Holdings Ltd (ASX: AZJ)

Ord Minnett thinks that Aurizon could be an ASX dividend share to buy. It is Australia's largest rail freight operator, transporting more than 250 million tonnes of Australian commodities each year. The broker has an accumulate rating and a $4.70 price target on its shares.

As for dividends, the broker is forecasting partially franked dividends of 17.8 cents per share in FY 2024 and then 24.3 cents per share in FY 2025. Based on the latest Aurizon share price of $3.87, this will mean dividend yields of 4.6% and 6.3%, respectively.

Rio Tinto Ltd (ASX: RIO)

Over at Goldman Sachs, its analysts think that this mining giant could be an ASX dividend share to buy in May. The broker has a buy rating and a $138.90 price target on the miner's shares.

In respect to income, the broker is forecasting fully franked dividends per share of US$4.29 (A$6.58) in FY 2024 and then US$4.55 (A$6.98) in FY 2025. Based on the latest Rio Tinto share price of $130.85, this will mean yields of approximately 5% and 5.3%, respectively.

Super Retail Group Ltd (ASX: SUL)

Goldman Sachs also thinks that Super Retail could be an ASX dividend share to buy. It is the owner of retail brands BCF, Macpac, Rebel, and Super Cheap Auto. Goldman has a buy rating and $17.80 price target on its shares.

As well as a decent upside, the broker is expecting some good yields from its shares in the near term. It is forecasting fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $14.37, this will mean good yields of 4.65% and 5.1%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

Analysts at Morgans continue to see youth fashion retailer Universal Store as a top option for income investors. The broker has an add rating and a $6.50 price target on its shares.

As for dividends, the broker has pencilled in fully franked dividends per share of 26 cents in FY 2024 and 29 cents in FY 2025. Based on the current Universal Store share price of $5.75, this will mean yields of 4.5% and 5%, respectively.

Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Aurizon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A boy is about to rocket from a copper-coloured field of hay into the sky.
Dividend Investing

2 ASX income stocks with rocketing dividends

For me, dividend growth trumps yield.

Read more »

An older couple use a calculator to work out what money they have to spend.
Dividend Investing

100,720 shares of this high-yield ASX dividend stock pay income equal to the Age Pension

Generating a full income from dividends sounds appealing, but how much do you actually need?

Read more »

Australian dollar notes in businessman pocket suit, symbolising ex dividend day.
Dividend Investing

2 ASX shares with dividend yields above 7%

Large yields could be very appealing right now.

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Dividend Investing

1 ASX dividend stock down 50% I'd buy

This ASX dividend stock has been under pressure. But looking ahead, there are signs the story could be starting to…

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Share Market News

How much do I need to invest in ASX shares to earn a $500 monthly passive income?

A $500 per month passive income is more achievable than you'd think.

Read more »

Growth of ASX share price represented by tiny beans stalk shooting up into the sky
Dividend Investing

3 ASX dividend shares I'd hold through anything

This trio has scale, resilience, and cash flow to endure market cycles.

Read more »

Two players on a field pump their fists in the air, indicating two of the best
Dividend Investing

Bell Potter names the best ASX dividend shares to buy

The broker has named these shares as best buys this month.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Down 40%: These high-yield ASX dividend shares are rated as buys

Brokers expect these buy-rated shares to offer 6% to 11% dividend yields.

Read more »