Fortunately, in this low interest rate environment, there are countless dividend shares for investors to choose from on the Australian share market.
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:
Accent Group Ltd (ASX: AX1)
According to a note out of Bell Potter, its analysts have a buy rating and $2.65 price target on this footwear retailer's shares. The broker was impressed with Accent's performance in the first half and appears confident more of the same is coming in the second half and beyond. In respect to dividends, Bell Potter is forecasting an 11.9 cents per share dividend in FY 2021 and then a 12.2 cents per share dividend in FY 2022. Based on the latest Accent share price of $2.34, this will mean fully franked 5.1% and 5.2% yields, respectively, over the next couple of years.
BHP Group Ltd (ASX: BHP)
A note out of Macquarie reveals that its analysts have an outperform rating and $55.00 price target on this mining giant's shares. According to the note, the broker has upgraded its copper prices for the coming years to reflect an expected increase in demand for the base metal. This has led to Macquarie boosting its earnings and dividend forecasts. The broker has pencilled in fully franked dividends of ~$2.99 per share in FY 2021 and ~$2.74 per share in FY 2022. Based on the current BHP share price of $47.97, this represents generous yields of 6.2% and then 5.7%.
Westpac Banking Corp (ASX: WBC)
Analysts at Citi have a buy rating and $26.00 price target on this banking giant's shares. According to the note, the broker believes the banking sector could continue to outperform in the near term. This is partly thanks to rising bond yields causing investors to rotate into the sector. In addition to this, it sees value in Westpac's shares at the current level, particularly given its balance sheet strength. Citi expects Westpac to pay fully franked $1.30 per share dividends in FY 2021 and FY 2022. Based on the latest Westpac share price of $24.45, this will mean an attractive 5.3% yield for investors.
