Fortunately, in this low interest rate environment, there are countless dividend shares for investors to choose from on the Australian share market.
But with so many to choose from, it can be hard to decide which ones to buy.
To narrow things down, I have picked out three ASX dividend shares that brokers think investors should buy:
Accent Group Ltd (ASX: AX1)
According to a note out of Bell Potter, its analysts have a buy rating and $2.65 price target on this footwear retailer’s shares. The broker was impressed with Accent’s performance in the first half and appears confident more of the same is coming in the second half and beyond. In respect to dividends, Bell Potter is forecasting an 11.9 cents per share dividend in FY 2021 and then a 12.2 cents per share dividend in FY 2022. Based on the latest Accent share price of $2.34, this will mean fully franked 5.1% and 5.2% yields, respectively, over the next couple of years.
BHP Group Ltd (ASX: BHP)
A note out of Macquarie reveals that its analysts have an outperform rating and $55.00 price target on this mining giant’s shares. According to the note, the broker has upgraded its copper prices for the coming years to reflect an expected increase in demand for the base metal. This has led to Macquarie boosting its earnings and dividend forecasts. The broker has pencilled in fully franked dividends of ~$2.99 per share in FY 2021 and ~$2.74 per share in FY 2022. Based on the current BHP share price of $47.97, this represents generous yields of 6.2% and then 5.7%.
Westpac Banking Corp (ASX: WBC)
Analysts at Citi have a buy rating and $26.00 price target on this banking giant’s shares. According to the note, the broker believes the banking sector could continue to outperform in the near term. This is partly thanks to rising bond yields causing investors to rotate into the sector. In addition to this, it sees value in Westpac’s shares at the current level, particularly given its balance sheet strength. Citi expects Westpac to pay fully franked $1.30 per share dividends in FY 2021 and FY 2022. Based on the latest Westpac share price of $24.45, this will mean an attractive 5.3% yield for investors.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
More reading
- ASX 200 climbs, Westpac in the clear, Nine reveals a WIN-ning deal
- Morgans just added this ASX 200 share to its model portfolio
- ASX 200 up 0.95%: Afterpay rises, Westpac’s APRA update, Qantas upgraded
- Westpac (ASX:WBC) share price higher following APRA update
- 2 ASX dividend shares with 5% fully franked yields
Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Leading brokers name 3 ASX dividend shares to buy appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/3rHIkLa
Leave a Reply