When it comes to dividend shares there certainly is a large number to choose from on the Australian share market.
But deciding which ones to buy can be a difficult task. Luckily, brokers across the country have been busy doing the hard work and recommending shares to buy and sell again this week.
Three dividend shares that have been rated as buys are listed below:
Australia and New Zealand Banking Group (ASX: ANZ)
According to a note out of Morgans, its analysts have upgraded this banking giant's shares to an add rating with a $29.00 price target. The broker upgraded ANZ's shares largely on valuation grounds after a pullback in its share price over the last few weeks. In addition to this, Morgans thinks that recent actions by APRA will be a positive for the banking sector and notes that low bond yields are making the banks attractive for income investors. ANZ's shares provide a trailing fully franked 5.8% dividend yield.
Lendlease Group (ASX: LLC)
A note out of Goldman Sachs shows that its analysts have retained their conviction buy rating and increased the price target on this international property and infrastructure company's shares to $19.22. According to the note, Goldman believes Lendlease's shares are undervalued on a sum of the parts valuation. It was also pleased to see the company sign a major agreement with Google in the United States to develop the tech giant's landholdings in San Jose, Sunnyvale and Mountain View into mixed-use communities. This is expected to be a big boost to its long term earnings. Goldman Sachs estimates that Lendlease's shares offer a 4.6% FY 2020 dividend yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Analysts at Morgans have also upgraded this airport operator's shares to an add rating with a price target of $8.71. According to the note, the broker believes that Sydney Airport is an attractive option for investors given the subdued outlook for bond yields over the medium term. Morgans expects Sydney Airport to grow its dividend by ~2% per annum through to FY 2023. It has forecast a 39 cents per share dividend in FY 2019 and a 39.75 per share dividend in FY 2020. The latter equates to a forward 5% dividend yield.
