3 growing ASX dividend shares to buy and hold

Income investors are spoilt for choice on the Australian share market.

But with so much choice, it can be hard to decide which ASX dividend shares to buy over others.

But don't worry, because analysts have narrowed things down for you by picking out a number of growing dividend shares that they rate as buys. They are as follows:

Coles Group Ltd (ASX: COL)

The first ASX dividend share that could be a buy is Coles. As one of the two supermarket giants in Australia, it offers income investors a slice of a defensive, cash-generative business that's deeply embedded in the daily spending habits of millions of Aussies.

The team at Macquarie is positive on the company and has an outperform rating and $23.10 price target on its shares.

As for income, it is forecasting fully franked dividends per share of 67 cents in FY 2025 and then 78 cents in FY 2026. Based on its current share price of $22.00, this would mean yields of 3% and 3.5%, respectively.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX dividend share that analysts are positive on is Lovisa.

It is fast fashion jewellery retailer that has been growing at a strong rate over the past decade, entering new markets at speed and delivering strong returns for shareholders. And while it isn't traditionally known as a dividend share, due to recent share price weakness, it now offers an attractive dividend yield.

For example, Bell Potter expects dividends of 71.1 cents in FY 2025 and then 76.9 cents in FY 2026. Based on its current share price of $24.85, this equates to dividend yields of 2.9% and 3.1%, respectively.

The broker has a buy rating and $30.00 price target on its shares.

Treasury Wine Estates Ltd (ASX: TWE)

A final ASX dividend share that could be a buy is Treasury Wine.

It is the wine giant behind the Penfolds brand. After a few years of underperformance, Treasury Wine is being tipped for strong and sustainable earnings growth over the medium term. This is being driven by its premiumisation strategy and the reopening of the China market.

Goldman Sachs is feeling very positive about its outlook and believes strong earnings (and dividend) growth is coming. It has put a buy rating and $12.90 price target on its shares.

In respect to dividends, the broker expects partially franked dividends of 42 cents in FY 2025 and then 49 cents in FY 2026. Based on its current share price of $8.84, this would mean dividend yields of 4.75% and 5.5%, respectively.

The post 3 growing ASX dividend shares to buy and hold appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has positions in Lovisa and Treasury Wine Estates. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Lovisa, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Coles Group and Macquarie Group. The Motley Fool Australia has recommended Lovisa and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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