Top 3 ASX Dividend Stocks for Income Investors to Buy Now
For income investors seeking new opportunities, several ASX dividend stocks stand out this month. Based on broker recommendations, here are the top three dividend stocks worth considering.
1. Cedar Woods Properties Limited (ASX: CWP)
Cedar Woods Properties is a major player in the Australian property market. The company has a diversified portfolio that spans various geographical locations and property types. Brokers remain optimistic about its prospects, especially in light of the ongoing housing shortage in Australia.
Bell Potter projects Cedar Woods to distribute dividends per share of 35 cents for FY 2026, increasing to 39 cents in FY 2027. With a current share price of $7.61, this implies dividend yields of 4.6% and 5.1%, respectively.
Bell Potter has issued a buy rating with a target price of $10.00 for Cedar Woods shares.
2. Charter Hall Retail REIT (ASX: CQR)
Charter Hall Retail REIT is a property trust that manages a diverse collection of retail centers anchored by essential services like supermarkets. This model offers stability during economic fluctuations, as consumers consistently spend on basic necessities.
Citi forecasts that Charter Hall will provide dividends per share of 25.5 cents in FY 2026 and 26 cents in FY 2027, translating to dividend yields of 6.5% and 6.6%. With a current share price of $3.92, the potential for stable income distributions is significant.
Citi also maintains a buy rating on the stock, setting a price target of $4.50.
3. Harvey Norman Holdings Ltd (ASX: HVN)
Harvey Norman is a well-known retail chain that operates under a unique franchise model. This flexibility allows it to maintain robust cash flows, making it resilient in challenging market environments.
Aside from selling electronics and furniture, Harvey Norman has a substantial property portfolio. This adds a layer of income stability, supporting its strong dividend payments over the years.
According to Bell Potter, Harvey Norman is expected to pay dividends per share of 30.9 cents in FY 2026 and 35.3 cents in FY 2027. At a current share price of $6.48, this results in expected yields of 4.8% and 5.4%.
Bell Potter has also issued a buy rating for Harvey Norman, with a price target of $8.30.
Conclusion
These three ASX dividend stocks—Cedar Woods, Charter Hall Retail REIT, and Harvey Norman—offer promising potential for income investors in February. Their solid business models and positive broker ratings make them attractive options for anyone looking to diversify their income portfolio.
