Buy BHP, Rio Tinto, and this ASX dividend share for income

Analysts are tipping these shares as buys for income investors.

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If you're planning to make some additions to your income portfolio, it could be worth paying attention to what analysts are saying about the three ASX dividend shares in this article.

They were recently rated as buys by analysts and forecast to provide investors with attractive dividend yields in the near term. Here's what you need to know about them:

BHP Group Ltd (ASX: BHP)

Goldman Sachs thinks BHP could be an ASX dividend share to buy.

It likes the mining giant due largely to its exposure to copper. It highlights that its analysts "remain bullish on copper due to ongoing supply side challenges and increasing demand." In light of this, Goldman expects "BHP's copper EBITDA to increase by ~US$3bn to ~US$10bn by FY26E (~45% of group EBITDA)."

In respect to income, Goldman believes that this will underpin fully franked dividends per share of US$1.03 in FY 2025 and US$1.13 in FY 2026. Based on its current share price of $39.48, this equates to dividend yields of 4.2% and 4.6%, respectively.

Goldman has a buy rating and $47.50 price target on its shares.

Harvey Norman Holdings Limited (ASX: HVN)

Another ASX dividend share that analysts are tipping as a buy is retail giant Harvey Norman.

Bell Potter thinks it would be a great option for investors. Its analysts highlight that the company stands to benefit greatly from an artificial intelligence driven major upgrade/replacement cycle of devices purchased during the COVID-19 pandemic.

The broker expects this to underpin fully franked dividends of 25.9 cents per share in FY 2025 and then 28.5 cents per share in FY 2026. Based on the current Harvey Norman share price of $4.95, this equates to attractive 5.2% and 5.75% dividend yields, respectively.

Bell Potter has a buy rating and $5.80 price target on its shares.

Rio Tinto Ltd (ASX: RIO)

Finally, Rio Tinto could be another ASX dividend share to buy according to analysts at Goldman Sachs.

Its analysts believe that the mining giant has an attractive relative valuation, free cash flow, and dividend yield. This is being underpinned partly by its exposure to copper and aluminium.

The broker notes that Rio Tinto has a "FCF/dividend yield in 2025E (c. 5%/5% yield) & 2026E (c. 7%/6% yield) driven by our bullish view on aluminium and copper (~45-50% of group EBITDA by 2026E)."

Goldman Sachs is forecasting fully franked dividends of US$3.70 per share in FY 2024 and then US$4.08 per share in FY 2025. Based on the current Rio Tinto share price of $117.68, this would mean yields of 5% and 5.5%, respectively.

The broker has a buy rating and $146.20 price target on the miner's shares.

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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 positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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