If you have space in your income portfolio for some new additions, then it could be worth checking out the two ASX dividend shares in this article.
That's because they are both household names which are being tipped as buys by the team at Goldman Sachs.
Let's see what the broker is saying about them this month:
Image source: The Motley Fool
Telstra Group Ltd (ASX: TLS)
The first ASX dividend share that could be a buy according to analysts is Telstra.
It is Australia's leading telecommunications and information services company with over 22 million retail mobile services and 3.4 million retail bundle and data services.
The team at Goldman Sachs is positive on the company. Its analysts note that Telstra is their "preferred defensive name into CY25; we are confident in its ability to deliver Mobile/InfraCo growth, ongoing cost efficiencies, and strong shareholder returns benefiting from portfolio mgmnt/mid-single digit DPS growth. The 'T30' update in late 2H25 should be a positive catalyst."
As for income, Goldman is forecasting fully franked dividends of 19 cents per share in FY 2025 and then 20 cents per share in FY 2026. Based on the current Telstra share price of $4.11, this represents dividend yields of 4.6% and 4.9%, respectively.
The broker currently has a buy rating and $4.50 price target on Telstra's shares.
Woolworths Group Ltd (ASX: WOW)
A second ASX dividend share for income investors to look at is Woolworths. It is Australia's largest retailer, operating the eponymous Woolworths supermarket chain, Big W, and a growing pet care business.
The company highlights that every week it aims to provide the best possible convenience, value, range and quality to the 24 million customers it serves across its network.
Goldman Sachs is also a big fan of the company. It likes Woolworths due to its belief that "it has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as its ability to pass through any cost inflation to protect its margins, beyond market expectations."
In respect to dividends, the broker is forecasting fully franked dividends of 85 cents per share in FY 2025 and then $1.06 per share in FY 2026. Based on its current share price of $28.54, this will mean dividend yields of 3% and 3.7%, respectively.
Goldman Sachs has a buy rating and $36.10 price target on its shares.
