When it comes to dividend shares there are countless options for investors to choose from on the ASX.
This certainly is fortunate with rates at record lows and potentially still going lower from here.
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 ASX dividend shares that brokers think investors should buy:
Alumina Limited (ASX: AWC)
According to a note out of Citi, its analysts have upgraded this alumina producer's shares to a buy rating with a $1.80 price target. The broker notes that Alumina's shares have thoroughly underperformed its sector peers despite a rise in the alumina price over the last few months. In light of this, it sees a lot of value in them at the current level. And based on the current Alumina share price, it estimates that it offers income investors a 5.2% FY 2021 dividend yield.
BHP Group Ltd (ASX: BHP)
Analysts at UBS have retained their buy rating and lifted the price target on this mining giant's shares to $41.00. The broker notes that base metal prices have been stronger than expected during the third quarter of 2020. This was particularly the case for iron ore prices, which averaged almost US$120 a tonne during the three months. As a result, the broker believes BHP is well-positioned to deliver another strong result in FY 2021. It is forecasting a dividend of approximately $2.49 per share, which equates to a fully franked 7% dividend yield.
Suncorp Group Ltd (ASX: SUN)
A note out of the Macquarie equities desk reveals that its analysts have upgraded this insurance and banking giant's shares to an outperform rating with an improved price target of $11.00. The broker believes that Suncorp's COVID provisions are sufficient. In light of this, Macquarie feels the material discount its shares are trading at in comparison to the ASX 100 is unnecessary. It is forecasting a dividend of 36 cents in FY 2021. This represents a fully franked 4.2% dividend yield.
