Top brokers name 3 ASX dividend shares to buy today

Scentre Group (ASX:SCG) shares are one of three that top brokers think income investors should buy this week. Here's why…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With an average dividend yield of approximately 4%, there certainly is a lot of choice for income investors on the Australian share market.

But with so much choice it can be hard to decide which ones to buy. To narrow things down I've picked out three dividend shares that brokers have just named as buys:

Hotel Property Investments Ltd (ASX: HPI)

Analysts at Deutsche Bank have initiated coverage on the hotel owner and landlord with a buy rating and $3.44 price target after Coles Group Ltd (ASX: COL) and Australian Venue Co formed a joint venture which related to the vast majority of its portfolio. Deutsche appears to believe the joint venture is a positive and sees value in Hotel Property Investments' gaming and liquor license. The company's shares currently offer a trailing 6% dividend.

Scentre Group (ASX: SCG)

A note out of Goldman Sachs reveals that its analysts have a buy rating and $4.71 price target on the shares of the Westfield shopping centre operator. According to the note, the broker believes that the market has priced in a sharp reduction in the carrying values of Scentre's mall portfolio. However, it believes this has left it materially undervalued, both in absolute terms and relative to its industry peers. So with its shares trading at 0.89x NTA and offering an estimated forward 5.7% dividend yield, Goldman believes Scentre's shares are in the buy zone today.

Star Entertainment Group Ltd (ASX: SGR)

According to a note out of Credit Suisse, its analysts have upgraded this casino and resort operator's shares to an outperform rating from neutral and lifted the price target on them to $5.50. With Star Entertainment's shares down 20% over the last 12 months, Credit Suisse believes its shares are cheap and expects investor sentiment to improve in the near future and lead to a re-rating. The broker expects Star Entertainment to pay a dividend of 21 cents per share in FY 2019 and then 22 cents in FY 2020. This works out to be a 4.8% and 5% yield, respectively, based on its current share price.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ⏸️ Dividend Shares

A boy hold money and dressed in business suit next to money bags on a desk, indicating a dividends windfall
⏸️ Dividend Shares

The Accent (ASX:AX1) dividend has lifted by 22%

The company will reward shareholders with an increased dividend...

Read more »

a woman sits in the driver's seat of a car with her arm resting on the door with a small smile on her face, looking out of the car.
⏸️ Dividend Shares

Carsales (ASX:CAR) share price records a modest rise on dividend slash

Australia's largest online automotive and marine classifieds business notches a conservative share price rise on its latest report.

Read more »

A young entrepreneur boy catching money at his desk, indicating growth in the ASX share price or dividends
Bank Shares

ASX 200 bank shares to follow suit after CBA dividend hike: expert

Dividend investors rejoice! This expert expects more dividends to come from ASX 200 bank shares...

Read more »

sad looking petroleum worker standing next to oil drill
Share Fallers

AGL (ASX:AGL) dividend slashed. Share price down 3% on Thursday

More headwinds for the energy giant as its dividend is now in the spotlight.

Read more »

A girl looks through a microscope at money.
⏸️ Dividend Shares

The ANZ (ASX:ANZ) share price has only gained 10% in 5 years. But have the dividends paid off?

We do the math to see if it has been worth investing in ANZ shares over the long term...

Read more »

man laying on his couch with bundles of money and extremely ecstatic about high dividend returns
⏸️ Dividend Shares

The NAB (ASX:NAB) share price is flat 5 years on. But have the dividends paid off?

We calculate if it has been worth investing in NAB shares over the long run...

Read more »

two children dressed in business attire with joyous, wide-mouthed expressions count money at a desk covered in cash and sacks of money either side.
⏸️ Dividend Shares

Top-10 ASX dividend share delivers market-thumping share price gains

The Holy Grail for income stocks is to return strong capital gains as well

Read more »

happy woman looking at her laptop with notes of money coming out representing financial success and a rising share price and dividend yield
⏸️ Dividend Shares

Mining shares in the ASX 200 might unearth US$26b worth of dividends

Are shareholders about to dig some dividends?

Read more »