Buy these ASX dividend shares for 5% to 7% yields

Analysts have good things to say about these income options.

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Income investors are spoilt for choice on the Australian share market.

So much so, it can be hard to decide which ASX dividend shares to buy over others.

To narrow things down, let's take a look at two buy-rated options that are tipped to provide investors with 5% to 7% dividend yields. They are as follows:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share that could be a buy is Accent Group. It is a leading footwear focused retailer that owns brands such as HypeDC, Platypus, and The Athlete's Foot.

Bell Potter is bullish on the company and recently tipped it as a buy with a $2.75 price target. The broker has named Accent Group as one of its key picks in the retail sector. It said:

We continue to view AX1 as a key pick in our retail sector coverage given their scale as Australia's market leader, growth adjacencies in both footwear/apparel from exclusive partnerships & TAF channel conversion, and growing vertical brand strategy led by Nude Lucy.

In respect to dividends, Bell Potter is forecasting fully franked payouts of 13.7 cents per share in FY 2025 and 15.6 cents per share in FY 2026. Based on its latest share price of $1.82, this equates to dividend yields of 7.5% and 8.6%, respectively.

Cedar Woods Properties Ltd (ASX: CWP)

Bell Potter also thinks that Cedar Woods could be an ASX dividend share to buy. It is a leading, national developer of residential communities and commercial developments.

The broker believes that the company is well-placed for double-digit earnings growth over the coming years. However, it feels that its shares are not being priced for this, creating a buying opportunity for investors. It said:

CWP has guided for both revenue and margin growth in FY26. Industry cost escalation is moderating, and labour availability is improving. The forward development pipeline is more diversified than ever, and the company continues to restock ahead of the cycle, positing itself well for sustained growth (BPe +11% 3yr EPS CAGR).

We maintain our $7.20 price target and continue to push CWP as a key pick in the sector, screening very attractively on numerous metrics at current levels.

As for income, the broker is forecasting dividends per share of 27 cents in FY 2025 and then 31 cents in FY 2026. Based on its current share price of $5.28, this equates to dividend yields of 5.1% and 5.9%, respectively.

Motley Fool contributor James Mickleboro has positions in Accent Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent 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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