There are a lot of ASX dividend shares to choose from on the Australian share market. But which ones are buys?
Let's take a look at three popular options and see what analysts are saying about them. They are as follows:
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Coles Group Ltd (ASX: COL)
Coles is of course one of Australia's leading retailers, with an extensive footprint of close to 1,800 retail outlets nationally. This comprises over 840 supermarkets and over 950 liquor stores. The latter includes the Liquorland, First Choice Liquor Market, and Vintage Cellars brands.
Its shares have come under pressure recently due to regulatory concerns. However, Bell Potter isn't concerned. In fact, it has recently initiated coverage on the ASX dividend share with a buy rating and $21.55 price target. This implies potential upside of 21% for investors from current levels.
As for dividends, its analysts are forecasting fully franked dividends of 68 cents per share in FY 2025 and then 78 cents per share in FY 2026. Based on the current Coles share price of $17.74, this equates to dividend yields of approximately 3.8% and 4.4%, respectively.
Super Retail Group Ltd (ASX: SUL)
Morgans thinks that Super Retail could be an ASX dividend share to buy. It is the retailer behind popular brands such as BCF, Supercheap Auto, and Rebel.
The broker currently has an add rating and $19.79 price target on its shares. This implies potential upside of 10% for investors.
In respect to dividends, the broker expects Super Retail to continue paying special dividends in the near term. It believes this will lead to fully franked dividends per share of 97 cents in FY 2025 and then 103 cents in FY 2026. Based on its current share price of $17.96 this will mean yields of 5.4% and 5.7%, respectively.
Westpac Banking Corp (ASX: WBC)
This banking giant's shares have pulled back materially from recent highs. Unfortunately, though, most brokers are still not convinced that they are good value at present.
For example, at the end of last month, Macquarie put an underperform rating and $26.00 price target on the bank's shares. This implies potential downside of 14% for investors from current levels.
As for income, the broker is forecasting fully franked divdends of $1.65 per share in FY 2024 and then $1.50 per share in FY 2025. Based on the current Westpac share price of $30.14, this implies yields of 5.5% and 5%, respectively.
