Top brokers name 3 ASX dividend shares to buy today

Top brokers have named Telstra Corporation Ltd (ASX:TLS) and these ASX dividend shares as buys. Here's why they are bullish…

| More on:
Green keyboard button saying buy stock

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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:

Humm Group Ltd (ASX: HUM)

According to a note out Macquarie, its analysts have retained their outperform rating and $1.30 price target on this financial services company. This follows the release of its third quarter update this week. The broker notes that Humm is a profitable buy now pay later provider and is expecting it to share its profits with shareholders in the form of dividends. It is forecasting a dividend per share of 3.4 cents per share in FY 2021. And thanks to provision releases in FY 2022, it expects Humm's dividend to increase to 6.6 cents per share next year. Based on the current Humm share price of 95.2 cents, this will mean fully franked dividend yields of 3.6% and 6.9%, respectively.

Rio Tinto Limited (ASX: RIO)

A note out of Ord Minnett reveals that its analysts have a buy rating and $161.00 price target on this mining giant's shares. Thanks to strong iron ore and copper prices, the broker believes Rio Tinto is well-placed to deliver bumper earnings and dividends in the coming years. Ord Minnett is forecasting fully franked dividends of ~$13.48 per share in FY 2021 and ~$11.22 per share in FY 2022. Based on the latest Rio Tinto share price of $126.01, this will mean 10.7% and 8.9% yields, respectively, over the next couple of years.

Telstra Corporation Ltd (ASX: TLS)

Another note out of Ord Minnett reveals that its analysts have retained their buy rating and lifted their price target on this telco giant's shares to $4.10. The broker lifted its price target to reflect both Optus and Telstra increasing their mobile plan prices. Ord Minnett expects this to result in an increase in its average revenue per user (ARPU) metric in FY 2022. This should be supportive of its earnings and dividends in the near future. As a result, Ord Minnett continues to forecast fully franked dividends per share of 16 cents in FY 2021 and FY 2022. With the Telstra share price trading at $3.45, this will mean yields of 4.6%.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Broker looking at the share price.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Broker Notes

Guess which ASX 200 share offers 12% upside and a 4% dividend yield

Bell Potter just slapped a buy rating on this stock.

Read more »

A man leaps from a stack of gold coins to the next, each one higher than the last.
Broker Notes

Qantas or Telstra share price: Which will climb higher in 2024?

Let's see what top broker Goldman Sachs has to say about these ASX blue-chip stocks.

Read more »

A woman smiles as she sits on the bus using her phone and listening to music through headphones.
Small Cap Shares

3 small-cap ASX shares with 'long runways for growth'

DNR's Sam Twidale reckons investors could do worse than buy these guys for the long run.

Read more »

Woman using laptop for job search
Investing Strategies

2 ASX 200 shares to buy for 'strong growth' at decent prices right now

Searching for a bargain? Here's a pair that Catapult's Dylan Evans has his eyes on at the moment.

Read more »

A Paladin Energy miner wearing a hard hat and protective gear stands in front of a large mining truck and smiles to the camera.
Energy Shares

Uranium is set to boom, and this is the 'premium' ASX stock to buy

Shaw and Partners' Jed Richards reckons these are the shares to buy for the nuclear energy theme.

Read more »

female in hard hat crosses fingers
Investing Strategies

The ASX 200 stock that could get second time lucky

These shares have failed to impress in 2024, but many experts believe it's a bargain buy.

Read more »