With an average dividend yield of approximately 4%, there certainly is a lot of choice for income investors.
Which is fortunate because it looks like that interest rates will be stuck at low levels for some time to come.
To help you narrow down your search, I've picked out three dividend shares that have been rated as buys this week. Here's why brokers like them:
BHP Group Ltd (ASX: BHP)
According to a note out of Morgans, it has retained its buy rating and reduced its price target on this mining giant's shares ever so slightly to $40.54 following its quarterly update. Although its production fell a little short of expectations, the broker was pleased with its petroleum production and continues to see significant value in its shares. Morgans expects BHP to pay a dividend of approximately $3.41 per share in FY 2019. If you take away the $1.41 per share special dividend which has now gone, this means BHP's shares currently offer a fully franked 6.1% forward yield.
Charter Hall Group (ASX: CHC)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and increased the price target on this property fund manager's shares to $8.04. According to the note, the broker lifted its price target due to its belief that Charter Hall could deliver earnings growth of 10% in FY 2019. It also expects Charter Hall to increase its distribution to 36 cents per share this year, equating to a partially franked 4.5% yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Analysts at Goldman Sachs have retained their buy rating and $8.12 price target on this airport operator's shares following its recent traffic update. According to the note, the broker was a little disappointed with domestic volumes during December which declined due to adverse weather. However, Goldman expects things to improve over the long term due to solid domestic passenger growth trends and increasing international volumes due to its position as the primary gateway into Australia. The broker has pencilled in a 41 cents per share dividend in FY 2019, equating to a forward 6.2% yield.
