When it comes to dividend shares there are countless options for investors to choose from on the ASX. Which certainly is fortunate with rates going down to record lows.
But with so many to choose from, it can be hard to decide which ones to buy.
To narrow things down I have picked out three dividend shares that brokers think investors should buy:
DEXUS Property Group (ASX: DXS)
Analysts at Morgan Stanley have upgraded this diversified property company's shares to an overweight rating and increased the price target on them to $13.00. According to the note, the broker believes DEXUS is a good option for investors during the current market volatility. It likes the company due to the fixed increases in its leases and the favourable conditions in the Sydney office market. The broker expects DEXUS to pay a 53 cents per unit distribution in FY 2020. This represents a distribution yield of 4.4%.
Flight Centre Travel Group Ltd (ASX: FLT)
A note out of UBS reveals that its analysts have held firm with their buy rating but trimmed the price target on this travel agent's shares to $44.00. According to the note, the broker expects tough trading conditions in the travel market to weigh heavily on its earnings and ultimately its dividend this year. However, it thinks investors should be patient and appears confident that Flight Centre will bounce back very strongly in FY 2021 due to a return to normal trading conditions and its cost reduction program. The broker has forecast a $1.32 per share fully franked dividend in FY 2021, which equates to a 5.8% yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating but trimmed the price target on this airport operator's shares to $8.18. This follows the release of its latest traffic update which revealed a sharp decline in international passenger numbers during February and month to date in March. Macquarie expects this to have a significant impact on its profits in FY 2020, but remains positive that it will bounce back strongly once the coronavirus outbreak passes. It expects a 39 cents per share dividend in FY 2020, which equates to a 6.2% yield.
