Fortunately, in this low interest rate environment, the Australian share market is home to a range of shares that are expected to provide attractive yields to investors in 2021.
If you're interested in adding a few to your portfolio, then you may want to look at the ones listed below. Here's why they could be dividend shares to buy:
Sonic Healthcare Limited (ASX: SHL)
Sonic Healthcare is a leading medical diagnostics company with operations across the world. It could be a dividend share to buy due to its strong business model, attractive yield, and positive performance during the pandemic.
In respect to the latter, Sonic recently released its half year results and revealed a 33% increase in revenue to $4.4 billion and a massive 166% increase in first half net profit to $678 million. While COVID-19 testing was a key driver of this growth, the rest of the business performed positively as well.
This went down well with analysts at Credit Suisse. The broker currently has an outperform rating and $40.00 price target on its shares. Credit Suisse has also pencilled in a 93 cents per share partially franked dividend in FY 2021. Based on the current Sonic share price, this will mean a 2.9% yield for investors.
Woolworths Limited (ASX: WOW)
Another dividend share for investors to consider is Woolworths. This retail giant could be a good option for income investors due to the quality of its portfolio if businesses. These include the eponymous Woolworths supermarket business, BIG W, BWS, and Dan Murphy's.
Woolworths appears well-placed for growth in the near term thanks to a favourable redirection in spending and consumer habits. Over the long term, its outlook remains just as positive due to its defensive qualities and strong market position.
One broker that is positive on the company is Goldman Sachs. It recently upgraded the retail giant's shares to a buy rating with a $43.60 price target. The broker is also forecasting a $1.13 per share fully franked dividend in FY 2021. Based on the current Woolworths share price, this equates to a 2.9% dividend yield.
