Westpac Banking Corp (ASX: WBC) has delivered the goods for its shareholders this year.
Since the start of the 2024, the banking giant's shares have risen 45%.
But with almost all brokers now describing Australia's oldest bank has significantly overvalued, it arguably isn't a good option for income investors looking to buy ASX dividend stocks today.
So, which stocks could be good alternatives right now? Let's take a look at three that analysts rate as buys:
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Challenger Ltd (ASX: CGF)
The team at Goldman Sachs thinks that annuities company Challenger could be an ASX dividend stock to buy.
It likes Challenger due to its "exposure to the growing superannuation market" and its belief that "higher yields should drive a favorable sales environment for retail annuities."
The broker is expecting this to support the payment of fully franked dividends of 27 cents per share in FY 2025 and then 28 cents per share in FY 2026. Based on the current Challenger share price of $6.17, this will mean dividend yields of 4.4% and 4.5%, respectively.
Goldman Sachs currently has a buy rating and $7.82 price target on its shares.
IPH Ltd (ASX: IPH)
Another ASX dividend stock that Goldman Sachs likes is IPH. It is an intellectual property (IP) services company with operations across the world.
Goldman likes the company due to its belief that it "is well-placed to deliver consistent and defensive earnings with modest overall organic growth."
And after increasing its dividend each year for the past decade, the broker expects this run to continue.
Goldman is forecasting fully franked dividends of 36 cents per share in FY 2025 and then 39 cents per share in FY 2026. Based on the current IPH share price of $5.06, this represents yields of 7.1% and 7.7%, respectively.
Goldman currently has a buy rating and $7.50 price target on its shares.
DEXUS Property Group (ASX: DXS)
Finally, UBS thinks that Dexus Property Group could be another ASX dividend stock to buy.
It is one of Australia's leading fully integrated real estate groups, managing a high-quality Australasian real estate and infrastructure portfolio valued at $54.5 billion. The Dexus platform includes the Dexus investment portfolio and the funds management business.
UBS expects this portfolio to underpin dividends per share of 37 cents in FY 2025 and 38 cents in FY 2026. Based on the latest Dexus share price of $7.19, this will mean yields of 5.15% and 5.3%, respectively.
The broker has put a buy rating and $8.86 price target on its shares.
