Once again brokers across Australia have been busy this week upgrading and downgrading shares as new data becomes available.
This morning three dividend shares found favour with brokers. Here's why these top brokers think investors should snap them up:
Bank of Queensland Limited (ASX: BOQ)
A research note out of Citi reveals that its analysts have retained their buy rating and $13.25 price target on the regional bank. Although yesterday's half-year result was weaker-than-expected, its analysts appear to have given management the benefit of the doubt on the second-half. Managing director and CEO Jon Sutton stated yesterday that he expects lending application volumes to pick up as the calendar year progresses. Whilst the bank's trailing fully franked 6.2% dividend is attractive, I'm not a buyer at the current share price.
Premier Investments Limited (ASX: PMV)
Analysts at UBS have retained their buy rating and $17 price target on the fast-growing retailer's shares following its 10.8% investment in Myer Holdings Ltd (ASX: MYR). Although Premier Investments says it has no plans currently to launch a takeover, UBS thinks doing so could deliver $25 million in synergies. However, it acknowledges that it is a high risk move given the emerging threat of a potential Amazon launch in Australia. I would have to agree with UBS on this one. Even after its recent rally, I think Premier Investments' strong growth and trailing fully franked 3.6% dividend make it a great investment option.
QBE Insurance Group Ltd (ASX: QBE)
According to a research note out of Macquarie, its analysts have reiterated their outperform rating and $13.45 price target on this leading insurance company following the release of its credit investor update. The note reveals that QBE is Macquarie's preferred pick in the industry, thanks partly to macro factors. While it's not my first preference in the industry, its partially franked trailing 4.1% dividend is certainly attractive for income investors.
