3 defensive ASX dividend shares that analysts are tipping as top buys

The Australian share market is home to a wide range of dividend-paying shares, but not all income is created equal.

It can be smart to focus on businesses with predictable cash flows, defensible assets, and the balance sheet strength to support dividends through different market conditions. When those boxes are ticked, dividend yields can look far more reliable than headline numbers alone suggest.

With that in mind, here are three defensive ASX dividend shares that brokers are currently recommending to clients.

APA Group (ASX: APA)

The first ASX dividend share to consider is APA Group. It owns and operates critical energy infrastructure across Australia, including gas pipelines, storage facilities, and power assets. These assets are typically long life and regulated or contracted, which helps provide steady and visible cash flows.

Macquarie is positive on APA’s outlook and currently has an outperform rating and $9.23 price target on its shares.

As for income, Macquarie is forecasting dividends of 58 cents per share in FY 2026 and then 59 cents per share in FY 2027. Based on its current share price of $9.23, that equates to very attractive dividend yields of 6.3% and 6.4%, respectively.

Rural Funds Group (ASX: RFF)

Another ASX dividend share analysts like is Rural Funds Group. It provides exposure to high-quality Australian agricultural assets, including cattle properties, cropping farms, and almond orchards. These assets are leased to high-quality operators under long-term agreements, which helps smooth income over time.

Bell Potter currently has a buy rating and a $2.45 price target on the company’s shares. The broker thinks its shares are being undervalued based on its net tangible assets, potentially making now an opportune time to invest.

This is especially the case for income investors, with Bell Potter forecasting dividends of 11.7 cents per share in both FY 2026 and FY 2027. Based on its current share price of $2.00, this would mean generous dividend yields of 5.85% in each year.

Telstra Group Ltd (ASX: TLS)

The final ASX dividend share analysts are backing is Telstra. It is of course Australia’s largest telecommunications provider, with dominant positions in mobile, fixed-line, and enterprise services. Its scale and network investments continue to support recurring revenue and cash generation.

Macquarie is positive on the company and has an outperform rating and $5.08 price target on its shares.

With respect to dividends, Macquarie is forecasting fully franked payouts of 20 cents per share in FY 2026 and 21 cents per share in FY 2027. Based on its current share price of $4.87, this equates to dividend yields of 4.1% and 4.3%, respectively.

The post 3 defensive ASX dividend shares that analysts are tipping as top buys appeared first on The Motley Fool Australia.

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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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group, Macquarie Group, Rural Funds Group, and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.