While National Australia Bank Ltd (ASX: NAB) delivered a solid result last week, most analysts now agree that its shares are fully valued.
In light of this, the banking giant may not be the best option for income investors who are looking for new additions to their income portfolio.
But which ASX dividend shares could be great alternatives? Here are three to consider buying:
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IPH Ltd (ASX: IPH)
The first ASX dividend share to look at is IPH. It is an intellectual property solutions company with operations across the world.
Goldman Sachs thinks its shares are good value at current levels, particularly given the company's defensive qualities and organic growth potential.
The broker expects this to underpin some very attractive dividend yields from its shares. It expects fully franked dividends per share of 34 cents in FY 2024 and 37 cents in FY 2025. Based on the current IPH share price of $6.13, this represents yields of 5.5% and 6%, respectively.
Goldman has a buy rating and $8.70 price target on its shares.
Sonic Healthcare Limited (ASX: SHL)
Another ASX dividend share for income investors to look at is Sonic Healthcare. It is a leading medical diagnostics company with operations across the world.
Analysts at Morgans think it would be a good option for income investors following a period of operating and share price weakness. It points out that "management remains confident in a turnaround, outlining numerous near/medium term drivers supporting underlying profitability and reflected in guidance, which we view as achievable."
In respect to dividends, the broker is forecasting fully franked dividends per share of 104 cents in FY 2024 and 116 cents in FY 2025. Based on the current Sonic share price of $26.12, this will mean yields of 4% and 4.4%, respectively.
Morgans has an add rating and a $34.94 price target on its shares.
Telstra Corporation Ltd (ASX: TLS)
A final ASX dividend share to consider instead of NAB is Telstra.
That's the view of analysts at Goldman Sachs, which believe it could be a great alternative. Particularly given how it believes "the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive."
The broker also highlights that it sees a "medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets."
As for income, the broker is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.58, this equates to yields of 5% and 5.3%, respectively.
Goldman has a buy rating and a $4.65 price target on Telstra's shares.
