The Australian share market is filled to the brim with dividend-paying shares.
However, not all of these ASX shares will be paying dividends that are larger than what they paid last year.
But three shares that analysts believe are destined to increase their dividends this year (and next) are listed below.
Here's what they are forecasting for these ASX shares:
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Deterra Royalties Ltd (ASX: DRR)
Deterra Royalties has been tipped to pay some big (and growing) dividends to investors. It is a mining royalties company, pocketing money from mining operations such as Mining Area C, operated by BHP Group Ltd (ASX: BHP), without lifting a shovel.
In FY 2023, the company rewarded its shareholders with a fully franked 28.9 cents per share dividend.
According to a recent note out of Morgan Stanley, its analysts are forecasting Deterra Royalties to increase its dividend to 32.7 cents in FY 2024 and then 39 cents in FY 2025. Based on the current Deterra Royalties share price of $4.58, this will mean dividend yields of 7.1% and 8.5%, respectively.
Morgan Stanley also sees plenty of upside for this ASX share. It currently has an overweight rating and $5.60 price target.
Suncorp Group Ltd (ASX: SUN)
Another ASX share that could be destined to grow its dividends is Suncorp. It is one of Australia's largest insurance companies, operating brands including AAMI, Apia, Bingle, GIO, Shannons, and Vero.
In FY 2023, the insurance giant paid shareholders a fully franked 60 cents per share dividend.
Analysts at Goldman Sachs believe that a big increase is coming in FY 2024, with another more modest increase the year after. It is forecasting fully franked dividends per share of 78 cents in FY 2024 and then 83 cents in FY 2025. Based on the current Suncorp share price of $16.19, this will mean dividend yields of 4.8% and 5.1%, respectively.
Goldman has a buy rating and $17.54 price target on its shares.
Telstra Corporation Ltd (ASX: TLS)
Finally, a third ASX share that looks set to increase its dividend this year and next is telco giant Telstra.
In FY 2023, the company's return to growth allowed the Telstra board to increase its dividend to a fully franked 17.5 cents per share.
Goldman Sachs believes this trend can continue thanks to the strength of its mobile business. As a result, it is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 18.5 cents per share in FY 2025. Based on the current Telstra share price of $3.53, this equates to yields of 5.1% and 5.25%, respectively.
The broker has a buy rating and $4.25 price target on its shares.
