3 ASX dividend shares to buy with 5% to 7% yields

Australian dollar notes inside the pocket on jeans, symbolising dividends.

The average dividend yield on the Australian share market is approximately 4%.

But investors don’t need to settle for that. Not where there are high-yield ASX dividend shares out there to choose from.

Three such examples are listed below. Here’s why analysts rate them as buys:

Accent Group Ltd (ASX: AX1)

Bell Potter thinks that Accent Group could be a top ASX dividend share to buy. It is footwear focused retailer operating over 800 stores across brands including Sneaker Lab, Platypus, Stylerunner, and The Athlete’s Foot.

Its analysts like the company due to its “growth adjacencies via exclusive partnerships with globally winning brands such as Hoka and growing vertical brand strategy.”

Bell Potter expects this to support fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the latest Accent share price of $1.92, this represents dividend yields of 6.8% and 7.6%, respectively.

Bell Potter has a buy rating and $2.50 price target on its shares.

IPH Ltd (ASX: IPH)

Another ASX dividend share for investors to look at is IPH. It is an intellectual property solutions firm offering a wide range of services for the protection, commercialisation, enforcement, and management of intellectual property.

Goldman Sachs is very positive on the company and believes it is “well-placed to deliver consistent and defensive earnings with modest overall organic growth.”

The broker expects this to underpin the payment of fully franked dividends of 34 cents per share in FY 2024 and 37 cents per share in FY 2025. Based on the current IPH share price of $6.21, this represents yields of 5.5% and 6%, respectively.

Goldman also sees plenty of upside for investors with its buy rating and $8.70 price target.

Rio Tinto Ltd (ASX: RIO)

A third ASX dividend share that could be a buy is Rio Tinto. It is of course one of the world’s largest mining companies. It owns a collection of world-class operations across several commodities and geographies. This includes the Gudai-Darri iron ore mine and the ISAL aluminium smelter in Iceland.

Goldman Sachs is also feeling very positive about the miner due to its production outlook. It highlights that “Rio is a FCF and production growth story in our view, with forecast Cu Eq production growth of ~5-6% in 2024 & 2025.”

Goldman expects this to support the payment of fully franked dividends per share of US$4.39 (A$6.77) in FY 2024 and then US$4.61 (A$7.11) in FY 2025. Based on the latest Rio Tinto share price of $127.90, this will mean yields of approximately 5.3% and 5.6%, respectively.

Goldman has a buy rating and $140.20 price target on its shares.

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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 Goldman Sachs Group. The Motley Fool Australia has recommended Accent Group and IPH. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.