The Australian share market remains a great hunting ground for passive income.

While bank shares often receive plenty of attention from dividend investors, there are many other options offering attractive forecast dividend yields.

Some of these shares also provide exposure to very different parts of the economy, which can be useful for investors trying to build a more diversified income stream.

Here are three ASX dividend shares that are rated as buys by brokers and forecast to yield more than 5% in FY 2027.

APA Group (ASX: APA)

The first ASX dividend share to look at is APA Group.

APA owns energy infrastructure assets, including gas pipelines and related infrastructure that help keep energy moving across Australia.

That gives the company an important role in the economy. Its assets support households, industry, power generation, and energy security, which can make its cash flows attractive to income-focused investors.

Citi is bullish on the company. It has a buy rating and $11.10 price target on APA’s shares.

As for income, the broker expects APA to pay a dividend of 59 cents per share in FY 2027. Based on the current share price of $10.31, this represents a forward dividend yield of approximately 5.7%.

Charter Hall Long WALE REIT (ASX: CLW)

Another ASX dividend share that could be attractive for income investors is the Charter Hall Long WALE REIT.

This property trust owns a portfolio of leased assets across Australia, with a focus on long weighted average lease expiry properties.

That long-lease structure is the key part of the income story. Rather than relying heavily on short-term leasing conditions, Charter Hall Long WALE REIT is built around contracted rental income from a portfolio of tenants across different sectors.

Citi also sees value here. It has a buy rating and $4.10 price target on its shares.

The broker expects Charter Hall Long WALE REIT to pay a dividend of 25.7 cents per share in FY 2027. Based on the current share price of $3.75, this equates to a forecast yield of approximately 6.9%.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX dividend share to consider is Universal Store.

It is a youth-focused fashion retailer with a portfolio of brands and stores targeting younger shoppers.

Retail shares can be cyclical, but Universal Store has built a strong position in its niche. Its store network, brand mix, and understanding of youth fashion trends give it a point of difference in a competitive market.

Morgans is positive on the company. It has a buy rating and $9.50 price target on Universal Store’s shares.

With respect to income, the broker expects the company to pay a fully franked dividend of 46 cents per share in FY 2027. Based on its current share price of $7.34, this represents a forward dividend yield of approximately 6.3%.

The post 3 buy-rated ASX dividend shares forecast to yield 5%+ in FY 2027 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Apa Group. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to buying blue-chip ASX shares for dividend income, Metcash Ltd (ASX: MTS) is often overlooked in favour of its larger and more famous rivals. But while the likes of Coles Group Ltd (ASX: COL), Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES) may be more popular with ASX investors, Metcash appears to have a lot more to offer income investors right now.

Metcash may not be a household name. However, most Australians would be quite familiar with the store networks that they help manage and supply to. These most prominently include IGA and Mitre 10, but also Cellarbrations, FoodWorks, and Thirsty Camel.

This makes Metcash one of the ASX’s most prominent consumer staples stocks, which have long been favourites of dividend investors thanks to their defensive characteristics.

But let’s get into the Metcash dividend.

Do Metcash shares really yield 6% right now?

At the time of writing, Metcash is trading at $3.12 a share. At this pricing, this ASX dividend stock is trading on a trailing dividend yield of 5.76%.

That yield derives from the last two shareholder payments that Metcash has doled out. The first of those was the final dividend worth 9.5 cents per share from August last year. The second was the interim dividend, worth 8.5 cents per share, that investors bagged in January of this year.

Both dividends came with full franking credits, as is Metcash’s habit.

Metcash has also flagged that its; next final dividend, due in August this year, will be kept steady at 9.5 cents per share.

Together, the two dividends that Metcash owners have enjoyed over the past 12 months give this company that trailing yield of 5.76%. That’s significantly more than what any of its larger and more popular rivals are offering right now, so income investors may wish to take note.

It is true that no trailing dividend is a reliable indicator of what a company will pay out going forward. It only ever reflects the past, it doesn’t predict the future.

Saying that, income investors can take comfort that Metcash has already given a heads-up for its next payout. So one could argue that investors will enjoy at least some of the current dividend yield if they buy Metcash shares today.

What do the experts reckon?

Zooming out, the future is more uncertain. However, last month, my Fool colleague covered the views of an ASX broker on Metcash. As we discussed at the time, Shaw and Partners’ Jed Richards did say this:

While growth is modest, [Metcash’s] defensive characteristics and reliable income stream support a hold position. It remains well positioned to benefit from steady consumer demand.

No doubt investors will be hoping that Richards is on the money there, at least from an income perspective. But there’s no doubt that Metcash is one of the S&P/ASX 200 Index (ASX: XJO)’s most eye-catching income stocks right now.

The post Buying Metcash shares? Here’s the yield you’ll get today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Pro Medicus Ltd (ASX: PME) shares started the week on a positive note, rising 1% to $176.64. The healthcare technology stock has delivered an impressive 35% gain over the past month, though it remains down around 36% from its highs of 12 months ago.

After such a strong rebound, investors may be wondering whether it’s time to lock in profits or whether the rally still has further to run.

Why have Pro Medicus shares surged?

The recent share price strength reflects growing confidence in the company’s growth outlook and its ability to continue winning major contracts in the highly competitive healthcare technology market.

Pro Medicus develops medical imaging software used by hospitals and healthcare networks around the world. Its flagship Visage platform enables clinicians to access and analyse medical images quickly, helping improve workflow efficiency and patient outcomes.

The company’s biggest advantage is its competitive moat. Pro Medicus has built a reputation for delivering faster and more efficient imaging solutions than many rivals. Once a hospital adopts its platform, switching providers can be costly and disruptive, creating strong customer retention and annual recurring revenue opportunities.

Turning a corner

The price of Pro Medicus shares turned a corner in early June when Pro Medicus announced three significant contract wins.

These included a new seven-year, $16 million agreement with TidalHealth, a five-year $28 million contract renewal with Allegheny Health Network (AHN), and a five-year $16 million contract renewal with Ohio State University (OSU).

The announcements reinforced the market’s confidence in both the quality of Pro Medicus’ technology and its ability to retain major customers. They also highlighted the company’s growing presence in the US, which remains its most important growth market.

Valuation and competition risk

Despite its impressive track record, Pro Medicus is not without risks.

Valuation remains the most obvious concern. Even after last year’s pullback, Pro Medicus shares continue to trade on a premium multiple relative to most ASX-listed healthcare stocks. That leaves little room for disappointment.

The business is also heavily reliant on winning and renewing large contracts. While management has consistently delivered in this area, any slowdown in contract activity could weigh on investor sentiment.

Competition is another factor to watch. The medical imaging market remains attractive, and rivals continue to invest heavily in their own technology offerings.

Finally, Pro Medicus generates a significant portion of its revenue from the US. Changes in healthcare spending, hospital budgets, or economic conditions could influence future growth rates.

What do analysts think?

Many market experts believe the rally may not be over.

TradingView data shows that 12 of 15 brokers currently rate the ASX healthcare stock as a buy or strong buy. The average price target sits at $189.47, implying around 8% upside from current levels.

Macquarie is among the most optimistic. The broker has an outperform rating on Pro Medicus shares and a price target of $221 per share. If achieved, that would represent potential upside of approximately 27%.

The post Pro Medicus shares are flying 35% higher. Time to cash out? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.