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:
ALS Ltd (ASX: ALQ)
According to a note out of the Macquarie equities desk, its analysts have an outperform rating and $8.25 price target on this testing services company's shares. Whilst the broker has been a little disappointed with its performance in FY 2019 it appears to see this as a temporary blip and nothing more. Its analysts also note that its shares are materially cheaper than its peers and believe now could be an opportune time to invest. They have forecast a 24.5 cents per share dividend in FY 2020, which means its shares offer a forward partially franked 3.5% dividend yield.
Rio Tinto Limited (ASX: RIO)
A note out of Citi reveals that its analysts have retained their buy rating and $110.00 price target on this mining giant's shares following the release of its half year result. According to the note, Rio Tinto's underlying earnings fell a touch short of the broker's estimates. However, with the miner confident that Chinese demand for iron ore will remain strong and supply will remain tight, the broker hasn't made any changes to its recommendation. Citi expects a dividend of approximately $6.30 per share in FY 2019, which equates to a 6.7% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
Analysts at Goldman Sachs have a buy rating and $4.20 price target on this telco giant's shares at present. According to the note, the broker likes Telstra due to its generous dividend yield in a low rate environment, potential asset sales which could crystallise value, its cost-out opportunities, and improving conditions in the Australian mobile market. And based on Goldman Sachs' forecasts for FY 2020, Telstra's shares currently provide investors with a fully franked forward 4.2% dividend yield.
