Brokers name 2 ASX dividend shares to buy

Fortunately for income investors, the Australian share market is home to a large number of dividend-paying ASX shares.

But with so many to choose from, it can be hard to decide which ones to buy over others.

To narrow things down, let’s look at two that brokers are tipping as buys this week. They are as follows:

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans has named travel agent giant Flight Centre as an ASX dividend share to buy.

In response to its guidance downgrade, which didn’t come as a surprise, the broker retained its buy rating with an improved price target of $14.80. This suggests that upside of 22% is possible for investors.

Morgans is positive on the company’s outlook and believes its earnings and share price will be materially higher once trading conditions normalise. It said:

Given recent downgrades from other travel industry peers due to the conflict in the Middle East, FLT’s downgrade wasn’t a surprise. Given its balance sheet strength and depressed share price, a new up to A$200m share buyback was announced. We have made only minor changes to our forecasts given FLT’s guidance was broadly in line with our previous forecast. While a peace agreement and eased travel restrictions are positive, we think 1H27 will still be challenging.

We forecast a strong recovery in 2H27. If it wasn’t for this conflict, FLT would have had a great year given its results for the first nine months were strong. We are buyers of FLT because when operating conditions ultimately improve, both its earnings and share price will be materially higher.

With respect to dividends, Morgans is forecasting fully franked dividends of 40 cents per share in FY 2026 and 48 cents per share in FY 2027. Based on its current share price of $12.11, this would mean dividend yields of 3.3% and 4%, respectively.

Seek Ltd (ASX: SEK)

Bell Potter thinks this job listings company could be an ASX dividend share to buy this week.

This morning, the broker has retained its buy rating and $18.60 price target on Seek’s shares. This implies potential upside of almost 40% for investors.

Bell Potter believes the company is well-placed to fend off any AI disruption thanks to its underlying proprietary data. It said:

We maintain our Buy; SEK is our preferred rate-sensitive classifieds exposure looking through to a dovish RBA tilt, given the diversification in CAR (Buy; TP: $39.80ps) and policy-impacted earnings outlook for REA (Sell; TP:$133ps), though we acknowledge likely near-term volatility in Aus and global economic data impacting the outlook for SEK.

SEK’s underlying proprietary data (~750m points per day) partially consists of traffic meta data which is unable to be scraped by third parties, is valuable for targeted job placements, and should support yield through soft volume environments.

As for income, the broker is forecasting fully franked dividends of 52 cents per share in FY 2026 and then 55 cents per share in FY 2027. Based on its current share price of $13.34, this would mean dividend yields of 3.9% and 4.1%, respectively.

The post Brokers name 2 ASX dividend shares to buy appeared first on The Motley Fool Australia.

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• How high could Flight Centre shares fly according to brokers?
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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.