Income investors are spoilt for choice when it comes to ASX dividend shares on the local market.

To narrow things down, let’s take a look at two that have been named as buys by brokers.

Here’s what they are recommending to clients:

Collins Foods Ltd (ASX: CKF)

Morgans is a fan of this quick service restaurant operator and has been pleased with its performance in a tough operating environment.

Commenting on its recent results, the broker said:

In our view, CKF reported a solid result in light of tough conditions. NPAT grew 17.6%, at the mid-point of guidance. COGS are expected to be flat to modest in FY27, which is better than feared. KFC Australia 1H27-to-date SSS of +4.0% is a stronger-than-expected start. Europe disappointed with early 1H27 SSS tracking deeply negative, though attributable to factors outside CKF’s control. Balance sheet remains strong with ND/EBITDA of 0.8x, keeping CKF well placed to fund the German expansion, accelerate Kwench rollout, and pursue further German bolt-on acquisitions. 

While the composition of our forecasts has changed, the net profit impact is minor. We believe CKF remains undervalued for its growth profile. Despite the tough consumer environment, CKF proves resilient regardless of numerous challenges and continues to deliver solid growth. We retain our BUY recommendation and revise our price target to A$10.60 from A$12.50.

Morgans is forecasting fully franked dividends per share of 31 cents in FY 2027 and 35 cents in FY 2028. Based on its current share price of $7.95, this would mean dividend yields of around 4% and 4.4%, respectively. 

The broker has a buy rating and $10.60 price target on the company’s shares.

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX dividend share that brokers are bullish on is retail giant Harvey Norman.

Bell Potter expects FY 2027 to be a tough year, but believes this is more than priced in. And with generous yields expected, it sees now as a good time to snap up Harvey Norman’s shares. It said:

While our views on FY27e sees challenging conditions for retailers with a recovery weighted to 2H, on our revised estimates HVN continues to trade at a 1-year forward P/E of ~13x (as per BPe) which appears attractive. 

We see mid-longer term growth catalysts related to the new store driven growth in international retailing (UK, Malaysia, Croatia), refit program in Australia, expansion of brand partnerships in the midpremium end of the whitegoods market somewhat offsetting the risk in the mid-market space and opportunities to grow their real estate portfolio as Australia’s single largest owner in large format retail with a global portfolio of ~$4.6b. We maintain BUY.

Bell Potter is forecasting fully franked dividends of 31.1 cents per share in FY 2027 and then 33.3 cents per share in FY 2028. Based on its current share price of $4.75, this equates to dividend yields of 6.6% and 7%, respectively.

The broker currently has a buy rating and $6.00 price target on its shares.

The post Brokers name 2 ASX dividend shares to buy with 4% to 7% yields appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Collins Foods. 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 Harvey Norman. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a wobbly first half of 2026, with Australian sharemarkets swinging sharply between highs and lows.

During periods of uncertainty, defensive ASX shares are typically thrust into the spotlight as investors rotate towards stable assets.

But after recent price gains, are these major ASX blue chips still a buy?

Here’s what the experts think.

Coles Group Ltd (ASX: COL)

Coles shares have suffered peaks and troughs throughout the first few months of 2026. The shares have traded anywhere between a low of $20.35 a piece and an all-time high of $24.41 in late-June. Overall though, the shares are up around 6% for the year-to-date. 

It looks like Coles shares hit a couple of headwinds this month. After spiking to a historic high, the shares weakened over the past couple of weeks, thanks to a combination of company-specific setbacks. 

These include concerns about a potential acquisition of Petbarn owner Greencross, and news that the Australian Competition and Consumer Commission (ACCC) has ruled against the supermarket giant’s proposed acquisition of a leasehold interest in Kalgoorlie-Boulder, Western Australia. 

But brokers are still bullish about the outlook for Coles shares. TradingView data shows that the majority (nine out of 16) of analysts have a buy or strong buy rating. Another five rate the supermarket stock as a hold and another two have a sell or strong sell rating.

The average $23.65 target price implies a potential 5% upside at the time of writing. 

Woolworths Group Ltd (ASX: WOW)

Coles’ direct rival, Woolworths has fared much better this year. For the year-to-date the supermarket giant’s share price is over 33% higher, and it has mostly trended upwards rather than suffering a series of sharp peaks and falls.

It looks like the steady increase has mostly been driven by investor confidence that the retailer’s earnings are recovering after a difficult period in late-2025.

Woolworths posted a stronger-than-expected first half result in February and is actively pursuing cost cutting initiatives to help support margins and earnings over time. 

But after the incredible run,  it looks like Woolworths shares have now reached their peak and are trading around fair value. 

TradingView data shows that eight out of 17 analysts have a hold rating on the supermarket stock. Another five rate the shares as a buy or strong buy, and four rate Woolworths shares as a strong sell.

The average $36.33 target price now implies a potential 8% downside over the next 12 months, at the time of writing.

Wesfarmers Ltd (ASX: WES)

Wesfarmers shares had a difficult start to the year and slumped to an annual low in mid-May. But the retail conglomerate’s shares quickly rebounded and have now recovered around 29% from that point to the close of the ASX on Thursday afternoon. For the year-to-date, Wesfarmers shares are now up around 12%.

The business benefited from an uptick in consumer spending and news that interest rates could start falling. Wesfarmers’ sheer scale and market dominance across several retail sectors has also helped reinforce the company’s competitive advantage.

The company has also been actively expanding. The company has opened five Anko stores in the Philippines and plans to launch another five by the end of FY27. Locally, its Bunnings brand continues to expand into new categories, including pet products and automotive accessories. And also its Kmart segment is testing larger K Home stores in an attempt to break into the furniture retail market.

But the concern now is that after a huge rebound, Wesfarmers shares have become too expensive.

TradingView data shows half (seven out of 14) of analysts have a hold rating on the stock. Another six rate Wesfarmers shares as a strong sell. Only one broker now holds a buy rating.

The average $77.39 target price implies a potential 16% downside, at the time of writing. 

The post Buy, hold, sell: Coles, Woolworths, Wesfarmers shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 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.

The team at Bell Potter has released updated guidance on Harvey Norman Holdings Ltd (ASX: HVN) and REA Group Ltd (ASX: REA) shares. 

The broker sees one as a clear buy with healthy upside, while the other is listed as a sell. 

Here is the latest on these retailers.

REA Group not out of the woods yet 

REA Group shares jumped 6% yesterday, however Bell Potter appears unconvinced of a long term rebound. 

Its share price remains down almost 33% in the last year. 

Bell Potter said REA’s final listings data point for FY26 capped off a strong final quarter for volumes. 

National new listings grew 13% for the month of June, supported by 3% and 9% growth in key Sydney and Melbourne markets respectively. Brisbane and Perth outperformed at 22% and 18%. The result lifts our expected FY26 listings to broadly flat from -1.3% previously, with R3m listings performance also strong at 11%.

Bell Potter has increased its price target  to $137 due to earnings estimate revisions and rolling the valuation forward to increasingly include FY28. However the broker maintains a sell rating for several reasons: 

• Higher expected RBA cash rates are forecast to weaken borrowing demand, reducing activity in the housing market.

• Recent government budget measures are expected to discourage property investment (particularly investors), weighing on house prices and listing volumes despite some support from owner-occupiers.
• Lower dwelling prices and fewer listings are expected to outweigh REA’s pricing (“buy yield”) benefits. 

Bell Potter’s updated target is roughly 14% below current levels. 

Healthy upside for Harvey Norman 

Harvey Norman shares have fallen 32% year to date, however Bell Potter is confident it can recover. 

Bell Potter said Harvey Norman concluded a challenging 2H26. 

While our FY26e estimates remain unchanged, we apply some conservatism to our forward estimates within our revenue assumptions in HVN’s Franchising and Retail divisions across all geographies. However, our estimates for the Property division remain largely unchanged as we view HVN’s prime position in Australia’s large format retail market given the sub-asset class continues to see highest rental growth in an under-supplied market.

The broker has slightly lowered its price target to $6.00 (previously $6.70) however has maintained its buy recommendation. 

From current levels, this indicates approximately 26% upside. 

We view FY27 as the cyclical low point for most retailers and see more leading indicators reflecting a tougher year led by the weak Consumer Confidence on a major household item in HVN’s key markets.

The post Buy, hold, sell: Harvey Norman and REA Group shares appeared first on The Motley Fool Australia.

More reading

• Brokers name 2 ASX dividend shares to buy with 4% to 7% yields
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: L1 Long Short Fund, REA, Wesfarmers shares
• Experts name 3 big-name ASX 200 shares to sell

Motley Fool contributor Aaron Bell 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 Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.