The Australian share market is home to a great number of quality dividend shares with above-average yields.
But with so much choice it can be difficult to decide which dividend shares to invest in. To narrow it down I thought I would take a look at which ones leading brokers are tipping as buys today.
Three which have recently been given buy ratings are listed below:
Baby Bunting Group Ltd (ASX: BBN)
A note out of Morgan Stanley reveals that its analysts have an overweight rating and $2.00 price target on the baby products retailer's shares. Baby Bunting's shares have fallen sharply this year due to the closure of its competitors and the impact clearance sales have had on its business. Analysts at Morgan Stanley expect this to be a short-term headwind and believe things will improve again in the second-half. This could make it a great time to invest in my opinion, especially with its shares providing a trailing fully franked 5.2% dividend.
Coca-Cola Amatil Ltd (ASX: CCL)
According to a note out of Credit Suisse, the broker has an overweight rating and $9.80 price target on the beverage company's shares. Despite Coca-Cola Amatil's management recently forecasting flat earnings in FY 2017, its analysts have maintained their overweight rating due to the bottler trading at a discount to its peers. Furthermore, the broker appears to be attracted to the company's generous trailing partially franked 6% dividend.
RCG Corporation Ltd (ASX: RCG)
Last week Citi upgraded the shares of this footwear retailer to a buy rating with a 95 cents price target. According to the note, Citi has been impressed with its like-for-like sales growth heading into the Christmas trading period. While it does see Amazon as a threat, the broker believes that its licensed brands should offer some protection from the retail behemoth. At the current price RCG's shares provide a trailing fully franked 7.6% dividend. I expect the company will be in a position to increase this dividend further in FY 2018.
