As February approaches, income investors are looking for opportunities to enhance their portfolios. Brokers have identified three Australian Securities Exchange (ASX) dividend shares that they recommend for purchase this month. These selections are based on each company’s strong fundamentals and potential for consistent returns.
Cedar Woods Properties Limited: A Strong Contender
Cedar Woods Properties Limited (ASX: CWP) is gaining attention from analysts at Bell Potter, who consider it a promising addition for income-focused investors. The company is recognized as one of Australia’s leading property firms, boasting a diversified portfolio that includes various geographic locations, price points, and product types.
Bell Potter anticipates that Cedar Woods will benefit significantly from Australia’s ongoing housing shortage. They project dividends per share of 35 cents for the fiscal year 2026, increasing to 39 cents in 2027. Based on its current share price of $7.61, this translates to estimated dividend yields of 4.6% and 5.1%, respectively. The broker maintains a buy rating on the stock with a price target of $10.00.
Charter Hall Retail REIT: Defensive and Reliable
Another compelling option is the Charter Hall Retail REIT (ASX: CQR). This property trust specializes in owning and managing a diversified portfolio of convenience-based retail centres, which are typically anchored by supermarkets and essential services.
Citi analysts highlight that the nature of these assets provides a defensive investment, as consumer spending on groceries and everyday necessities tends to remain steady through various economic conditions. The trust benefits from long lease agreements and high-quality tenants, ensuring strong visibility over rental income and supporting reliable distributions to unitholders. Citi projects dividends per share of 25.5 cents in FY 2026 and 26 cents in FY 2027, resulting in dividend yields of 6.5% and 6.6%, based on the current share price of $3.92. Citi has issued a buy rating for the stock, with a price target of $4.50.
Harvey Norman Holdings Ltd: A Retail Powerhouse
Brokers are also optimistic about Harvey Norman Holdings Ltd (ASX: HVN), a major player in the retail sector known for its unique franchise model. This structure generates robust cash flows, allowing the company to navigate challenging retail climates effectively.
In addition to its core operations in electronics and furniture, Harvey Norman possesses a substantial property portfolio that adds further income stability. Bell Potter remains positive about the retailer’s prospects, forecasting fully franked 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 equates to dividend yields of 4.8% and 5.4%, respectively. The broker maintains a buy rating with a price target of $8.30.
Investors should consider these ASX dividend shares as potential additions to their income portfolios this February, backed by strong recommendations from leading brokers. Each company offers unique advantages that align with the needs of income-focused investors seeking reliable returns in a fluctuating market.
