Earlier this week the Reserve Bank surprised nobody when it elected to keep rates on hold for what will be the 18th month in a row.
Whilst this isn't great news for savers, I don't think they should worry about it. After all, the Australian share market is home to some high quality dividend shares.
Three dividend shares which have been tipped as buys by brokers are summarised below:
G8 Education Ltd (ASX: GEM)
According to a note out of Ord Minnett, the broker has retained its buy rating and $4.90 price target on this childcare operator's shares. Its analysts appear pleased with the company's new management team and the progress they are making. Furthermore, the broker has reviewed the latest child care data which reveals improvements in like-for-like centre growth. Ord Minnett expects G8 Education to pay a 20 cents per share dividend in FY 2018, which equates to a fully franked 6.1% yield. Whilst I do like G8 Education, I would hold off buying shares until its next update in order to see if its occupancy levels have improved.
Telstra Corporation Ltd (ASX: TLS)
Analysts at Deutsche Bank have retained their buy rating and $4.04 price target despite the telco giant announcing a $273 million non-cash impairment charge and writing-down to zero the value of its Ooyala business. The broker does not expect this decision to have any impact on its ability to pay its proposed 22 cents per share dividend in FY 2018. Furthermore, Deutsche has forecast an increase in its dividend to 24 cents per share in 2019. I agree with the broker on this one and believe Telstra would be a great option for income investors.
Westpac Banking Corp (ASX: WBC)
A note out of the equites desk of Macquarie reveals that its analysts have retained their outperform rating and $35.00 price target on the banking giant's shares. Although its first-quarter capital generation was weaker than expected, the broker still believes that Westpac's shares are very attractive after recent declines. Furthermore, the broker thinks there's a chance that the bank could surprise the market with lower than expected impairments. Macquarie expects Westpac to pay a fully franked $1.99 per share dividend in FY 2018. This equates to a 6.6% yield based on its last close price and makes it well worth considering as a buy, in my opinion.
