2 high-yield ASX dividend shares for Australian retirees

Analysts are tipping these shares as buys and expect big things from them.

| More on:
Man holding Australian dollar notes, symbolising dividends.

Image source: Getty Images

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

The Australian share market typically offers income investors an average dividend yield of 4%.

While this is a great yield, you don't have to settle for that.

Not when there are high-yield ASX dividend shares out there offering retirees the opportunity to generate even greater yields.

For example, here are two buy-rated high-yield shares that analysts think could be good additions to a balanced income portfolio:

Healthco Healthcare and Wellness REIT (ASX: HCW)

The first high-yield ASX dividend share that could be a buy for retirees is the Healthco Healthcare and Wellness REIT.

It is a real estate investment trust focused on owning healthcare and wellness property assets.

The company notes that its objective is to provide exposure to a diversified portfolio underpinned by healthcare sector megatrends, targeting stable and growing distributions, long-term capital growth and positive environmental and social impact.

At the last count, the company had a $1.6 billion portfolio of assets and a large-scale development pipeline. The former includes hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness properties.

Morgans is very positive on the company and believes it is well-placed to pay big dividends to shareholders in the near term.

It is forecasting dividends per share of 8.4 cents in FY 2025 and then 8.8 cents FY 2026. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.11, this will mean dividend yields of 7.6% and 7.9%, respectively.

Morgans currently has an add rating and $1.51 price target on its shares.

IPH Ltd (ASX: IPH)

Another high-yield ASX dividend share that analysts think could be a buy is IPH.

It is an intellectual property (IP) services company with a network of member firms working throughout ten IP jurisdictions. Its businesses include leading IP firms AJ Park, Griffith Hack, Pizzeys, ROBIC, Smart & Biggar, and Spruson & Ferguson. It also owns the Applied Marks business, which is an online automated trade mark application platform.

IPH's shares recently touch on a 52-week low following a market update. Nevertheless, Goldman Sachs remains very positive and sees this as a buying opportunity. Its analysts believe IPH "is well-placed to deliver consistent and defensive earnings with modest overall organic growth."

This is expected to underpin further dividend increases to 36 cents per share in FY 2025 and then 39 cents per share in FY 2026. Based on the current IPH share price of $4.97 this represents fully franked dividend yields of 7.2% and 7.8%, respectively.

Goldman has a buy rating and $7.50 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 recommended IPH. 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

Man pointing an upward line on a bar graph symbolising a rising share price.
Dividend Investing

3 growing ASX dividend stocks to buy now

Analysts are expecting these stock to paying growing dividends.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

Where I'd invest $5,000 into ASX dividend shares right now

These two stocks look irresistible to me.

Read more »

Smiling business woman calculates tax at desk in office.
Dividend Investing

Turn tax return into passive income with these ASX dividend shares

These options can bring solid returns through passive income. 

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

Forget term deposits, these ASX dividend shares offer ~5% to 11% yields

Analysts think these shares could be better than term deposits. Let's find out what yields they offer.

Read more »

Tax time written on wooden blocks next to a calculator and Australian dollar notes.
Tax

Tax time: Use this hack to keep the Australian Tax Office off your back

Buying dividend shares can save you paying taxes...

Read more »

Man smiling at a laptop because of a rising share price.
Dividend Investing

2 exciting high-yield ASX dividend shares I'd buy in June

These stocks have a lot to offer investors focused on income.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Dividend Investing

Looking for passive income amid falling interest rates? Check out this top ASX All Ords dividend stock

This high-yielding ASX dividend stock can help boost your passive income amid falling interest rates.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Dividend Investing

Down 34% since 2021, does this ASX dividend share still offer investors a 10% yield today?

There are a few warning signs over this stock.

Read more »