These 3 ASX shares will deliver better than 5% dividend yields, Macquarie says

Depending on your investor profile, a strong dividend stream can be a good target to have.

I’ve had a look at the research reports coming out of Macquarie and have selected three companies which the broker’s analyst team predicts will continue to pay strong dividend yields for the next couple of years at least.

Not surprisingly, one is an infrastructure company, but the other two might be from less obvious sectors for steady payouts.

Let’s have a look what they’re saying.

APA Group (ASX: APA)

This company is a gas pipeline operator, and hence its revenues and returns tend to be fairly stable over time.

Macquarie said in its recent research note on the company that APA has highlighted that it expects further opportunities as coal exits the energy market, and from increasing demand from data centres.

The broker also highlights the fact that the Federal Government’s gas reservation policy creates incentives for companies to develop new gas fields.

The Macquarie team said:

For APA the policy also includes an expectation the exporters ‘are pursuing commercial arrangements to overcome any infrastructure constraints that may otherwise prevent them supplying’. This should provide support for more pipeline investment medium term.

Macquarie’s share price target on the company is $10.41, which is only slightly higher than the $10.13 price at the time of writing, but the broker is predicting a dividend yield of 5.7% this year, rising to 5.9% by 2028.

EBOS Group Ltd (ASX: EBO)

This company is, in its own words, “the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products”.

Macquarie actually has a very bullish price target on the stock in addition to the dividend yield which has brought it into this list.   

EBOS in April downgraded its FY26 underlying EBITDA guidance to $610 to $620 million, down from a previous range of $615 to $635 million, due to higher fuel and energy costs.

Macquarie said on the positive side of the ledger, a new First Pharmaceutical Wholesaler Agreement has been struck with the Federal Government, which will benefit EBOS’ Symbion division.

Macquarie has a price target of NZ$36.44 on the stock compared with NZ$19.60 at the time of writing.

The broker is forecasting a dividend yield of 5.9% for this year, rising to 6.9% by 2028.

Nine Entertainment Co. Holdings Ltd (ASX: NEC)

The Macquarie team said in their research note on Nine that they believed the advertising market could be approaching a cyclical low point, “with early signs of improved business confidence”.

Macquarie added:

Assuming inflation does not materially worsen versus expectations, we are optimistic on an improving ad market in FY27.

The Macquarie analysts also noted that a new agreement requiring digital platforms to pay for news is likely to be struck in early FY27, which could also be a benefit for Nine, which owns titles such as the Australian Financial Review and The Age.

Macquarie has a price target of $1.05 on the shares, compared with 93.5 cents at the time of writing, and is predicting a dividend yield of 6.4% this year, rising to 8% in 2028.

The post These 3 ASX shares will deliver better than 5% dividend yields, Macquarie says appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group and Macquarie Group. The Motley Fool Australia has recommended Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.