• 3 of the best ASX dividend shares for income investors

    Dividends written in yellow on chalkboard, with finance-related diagrams.

    For investors looking to generate passive income from the share market, there are plenty of opportunities among ASX dividend shares right now.

    Here are three shares that income investors may want to consider.

    Cedar Woods Properties Ltd (ASX: CWP)

    The first ASX dividend share that could be worth considering is Cedar Woods Properties. This property developer has a growing portfolio of residential communities, townhouses, and apartments across Australia.

    The company appears well positioned to benefit from Australia’s ongoing housing shortage and growing population, which could support demand for its developments. And with Cedar Woods reporting record presales of $830 million at the end of FY 2026, it has excellent visibility over future earnings.

    Bell Potter is positive on the company and has a buy rating and $9.80 price target on its shares. As for income, it is forecasting fully franked dividends of 44 cents per share in FY 2027 and 47 cents in FY 2028. Based on its current share price of $5.90, this would mean dividend yields of approximately 7.5% and 8%, respectively.

    Eagers Automotive Ltd (ASX: APE)

    Another ASX dividend share that could appeal to income investors is Eagers Automotive.

    It is Australia’s largest automotive retailer, operating an extensive network of dealerships selling new and used vehicles, alongside servicing, parts, and finance products.

    Its scale and diversified operations provide opportunities to improve efficiency and support long-term earnings growth.

    Eagers is also expanding internationally, with its recent investment in Canada’s automotive retail market providing another potential growth opportunity.

    Bell Potter is bullish on Eagers Automotive and has a buy rating and $27.50 price target on its shares.

    With respect to income, the broker estimates that it will pay dividends of 76 cents per share in FY 2026 and 82 cents in FY 2027. Based on its current share price of $18.08, this would mean dividend yields of 4.2% and 4.5%, respectively.

    Rural Funds Group (ASX: RFF)

    A final ASX dividend share worth considering is Rural Funds Group.

    This agricultural property company owns a diversified portfolio of farmland across Australia, including cattle properties, vineyards, and orchards.

    Rather than relying on agricultural production, Rural Funds generates the majority of its income by leasing its properties to farming businesses. These long-term leases provide relatively predictable rental income, which helps support regular dividends to investors.

    Bell Potter currently has a buy rating and $2.55 price target on Rural Funds units.

    As for income, the broker expects annual dividends of 11.7 cents per unit in FY 2027, FY 2028, and FY 2029. Based on its current share price of $1.92, this represents dividend yields of approximately 6.1% for each of those years.

    The post 3 of the best ASX dividend shares for income investors appeared first on The Motley Fool Australia.

    Wondering where to invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See the 5 Stocks

    * Returns as of 6 March 2025

    More reading

    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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Cedar Woods Properties and Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • This ASX uranium company is set to surge: Brokers

    Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.

    Shares in Deep Yellow Ltd (ASX: DYL) have crashed to a 12-month low after the company decided not to go ahead with its flagship Tumas uranium project this quarter.

    The company said Tumas remained a world-class, greenfields uranium project, but that it had determined that current equity market conditions did not support going ahead with a final investment decision.

    The analyst teams at both Macquarie and Morgans have since issued new research notes on the uranium company, with both expecting significant share price upside.

    Work to continue proving up the project

    Management said it had made strong progress in areas such as concrete preparation, reinforcing steel installation and the award of key construction contracts.

    Managing Director Greg Field said:

    Despite the compelling global uranium market fundamentals, challenging equity market conditions continue to constrain funding options for uranium developers. Against this backdrop, we believe it is prudent to defer FID beyond Q4 2026 while maintaining construction momentum and progressing our funding strategy to ensure Tumas is well positioned to advance when market conditions improve. The commencement of civil works on schedule represents another significant milestone for Tumas, reflecting the considerable progress achieved across engineering, procurement and construction readiness as we systematically de-risk the project’s development.

    Deep Yellow said work on an updated value model for the mine was nearing completion and would be released to the market once finished.

    About 440 contractors and employees had also been inducted to work on the project.

    Shares looking very cheap, brokers say

    In a research note, Morgans said the withdrawal of the FID timeline was not altogether surprising given the weakness in the company’s share price.

    They added:

    In our view, raising equity at current levels would have represented an unattractive funding outcome for existing shareholders. Importantly, we view this as a delay rather than a change in strategy, with DYL remaining focused on advancing Tumas and positioning the project for a future FID.

    Morgans is forecasting a 12-month delay to a final investment decision, “resulting in a corresponding reduction in our discounted cash flow valuation as future cash flows are delayed”.

    The broker reduced its price target on Deep Yellow shares from $1.95 to $1.50, compared with 76 cents at the time of writing.

    They added:

    While financing, execution and uranium market risks remain, we believe the market is underappreciating the value of a development ready uranium asset with significant leverage to improving fundamentals. That said, the need to secure funding for Tumas, including a likely equity component, is expected to remain a key overhang on the stock.

    Macquarie has a price target of $1.95 on Deep Yellow shares.

    The post This ASX uranium company is set to surge: Brokers appeared first on The Motley Fool Australia.

    Wondering where to invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See the 5 Stocks

    * Returns as of 6 March 2025

    More reading

    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 recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • How many Telstra shares do I need to buy for $12,000 of passive income in 2027?

    Piles of coins.

    Telstra Group Ltd (ASX: TLS) shares are one of the few ASX blue-chip stock options that aren’t about banking or commodities. For that reason alone, it could be a solid option to consider for passive income.

    These days, telecommunications could be one of the most defensive industries, given how important an internet connection is for households and businesses.

    There’s no certainty around how technology will evolve in the coming years. However, data will likely become increasingly important, and I believe Telstra is well suited to meet that demand.

    I think 5G (and 6G in the future) could increasingly challenge in the home internet market space. Telstra’s position as the current market leader in mobile, and its financial firepower to invest the most, could mean capturing some of the dollars currently going to the NBN.

    During FY26, the number of 5G fixed wireless subscribers increased by 20.7% to 146,000.

    Turning to Telstra’s FY26 performance, statutory earnings per share (EPS) grew by 5.3% to 19.9 cents, and cash EPS increased 13.8% to 25.5 cents. This helped fund a 10.5% increase in the dividend per share to 21 cents

    What could the 2027 dividend payout be?

    According to the projection on CMC Invest, the ASX telco share could deliver a larger payout to shareholders in FY27.

    The current forecast suggests the company could hike its dividend to 22 cents per share in the 2027 financial year. That would be a year-over-year increase of 4.75%, which would noticeably outpace current inflation.

    At the time of writing, that possible payout translates into a forward dividend yield of 4.6% excluding franking credits and 6.6% including franking credits.

    There are not many ASX blue-chip shares that offer a dividend yield that high, whilst also growing the payout at a solid pace.

    How many Telstra shares are needed for $12,000 of annual passive income?

    To earn that much dividend income, we’re talking about a large investment. But it depends on whether an investor wants to include or exclude franking credits as part of the dividend income total.

    If an investor doesn’t include franking credits, then to earn $12,000 per year of dividend cash, it’d take 54,546 Telstra shares.

    If we include the franking credits, it would take 39,358 Telstra shares, assuming the same level of franking as FY26.

    Overall, I think the ASX telco share has a promising future as an ASX dividend share. The 274,000 increase in mobile handheld users in FY26 (including 235,000 wholesale subscribers) is a strong driver of ongoing dividend growth. The future looks positive to me.

    The post How many Telstra shares do I need to buy for $12,000 of passive income in 2027? appeared first on The Motley Fool Australia.

    Wondering where to invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See the 5 Stocks

    * Returns as of 6 March 2025

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. 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 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.