3 ASX dividend shares to buy with ~5% yields for an income boost

If you’re scouting for some new ASX dividend shares to buy, then it could be worth considering the three listed below.

Here’s why analysts think these high-yield shares are in the buy zone:

Rio Tinto Ltd (ASX: RIO)

The first ASX dividend share that could be a buy is Rio Tinto.

It is one of the largest miners in the world and the owner of a high-quality portfolio of operations across multiple commodities.

The team at Goldman Sachs is positive on the miner and recently put a buy rating and $138.30 price target on its shares.

As for dividends, the broker is expected fully franked dividends per share of US$4.39 (A$6.62) in FY 2024 and then US$4.61 (A$6.96) in FY 2025. Based on the latest Rio Tinto share price of $119.89, this will mean yields of approximately 5.5% and 5.8%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Goldman Sachs also think that Telstra could be an ASX dividend share to buy right now.

It has a buy rating and $4.55 price target on Telstra’s shares.

In respect to income, the broker is forecasting fully franked dividends of 18 cents per share in FY 2024 and 19 cents per share in FY 2025. Based on the current Telstra share price of $3.83, this equates to yields of 4.7% and 5%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that has been named as a buy is Universal Store.

It is the youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.

Bell Potter is a fan and currently has an add rating and $5.65 price target on its shares.

As for income, the broker expects fully franked dividends per share of 24 cents in FY 2024 and then 31 cents in FY 2025. Based on the current Universal Store share price of $4.61, this will mean yields of 5.2% and 6.7%, respectively.

The post 3 ASX dividend shares to buy with ~5% yields for an income boost appeared first on The Motley Fool Australia.

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More reading

• Long-term investing: 3 top ASX stocks you can buy for under $20 a share
• Top ASX passive income shares to buy in March 2024
• 3 key numbers for the Telstra share price that I think are being overlooked
• Why Camplify, Platinum, Rio Tinto, and Woodside shares are dropping today
• Why is the Rio Tinto share price tumbling into the red?

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Telstra 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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