The MarketIndex site compiles broker recommendations to get a consensus about the best of the biggest 150 shares on the ASX.
Relying on just one broker's opinion may not give a lot of confidence, but if several brokers like a share then that's a sign it could be a good idea.
Here are three dividend shares with yields above 5% where the consensus believe it's a buy:
Fortescue Metals Group Limited (ASX: FMG)
Fortescue is one of Australia's largest iron miners. It is benefiting from the iron price being at a higher price than a couple of years ago and it has also managed to get its production costs down to an impressive level.
Higher profits should translate into growing dividends. Its trailing grossed-up dividend yield is 11%, but who knows how reliable that yield is?
G8 Education Ltd (ASX: GEM)
G8 Education is one of Australia's largest childcare providers. There is a child boom going on at the moment, which should flow into more children going to kindergarten and childcare.
However, although there is more supply of kids into the childcare system there's also more childcare operators. That's one of the main reasons why G8's share price has fallen from above $4.40 to today's $2.32. This has had the effect of boosting the grossed-up yield to above 12%.
Again, it remains to be seen if that's a sustainable dividend yield because the dividend has already been reduced in the past year.
National Australia Bank Ltd (ASX: NAB)
NAB is one of Australia's largest banks. I do like NAB compared to the other banks because it seems to be more forward-thinking when it comes to working with Australia's quickest-growing businesses such as REA Group Limited (ASX REA), Xero Limited (ASX: XRO) and Afterpay Touch Group Ltd (ASX: APT).
I think it's also a good thing that NAB is less exposed to the Australian mortgage sector than Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) are.
NAB has a grossed-up dividend yield of 9.98%. I think NAB is the one most likely to maintain its dividend, unsurprisingly it's also the one with the lowest yield.
Foolish takeaway
I can see why brokers think these shares would make decent dividend shares, they have big yields and could grow earnings in the medium-term. However, they seem like too high-risk for me and I'd much rather go for something like WAM Capital Limited (ASX: WAM).
