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 brokers think investors should buy:
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Bendigo and Adelaide Bank Ltd (ASX: BEN)
According to a note out of Macquarie, its analysts have retained their outperform rating and $11.00 price target on this regional bank's shares. This follows a review of the banking sector following the recent flurry of results and updates. Macquarie is forecasting dividends of 52 cents per share in FY 2021 and 50 cents per share in FY 2022 from the bank. Based on the current Bendigo and Adelaide Bank share price of $10.23, this will mean fully franked yields of 5.1% and 4.9%, respectively, over the next two years.
Suncorp Group Ltd (ASX: SUN)
A note out of Citi reveals that its analysts have upgraded this banking and insurance giant's shares to a buy rating with an $11.80 price target. The broker made the move following Suncorp's banking investor forum earlier this week. Citi believes the company's medium term targets offer decent upside potential if it can achieve them. Though, it has warned that improvements may take some time, so investors may need to be patient. In the meantime, though, it is forecasting Suncorp's shares to provide dividends of 56 cents per share in FY 2021 and 58 cents per share in FY 2022. Based on the current Suncorp share price of $10.62, this equates to 5.3% and 5.5% yields.
Woolworths Group Ltd (ASX: WOW)
Another note out of Macquarie reveals that its analysts have retained their outperform rating and $44.50 price target on this retail conglomerate's shares. Macquarie has been running the ruler over its demerger of the Endeavour Drinks business and remains positive on the move. Particularly given the potential for upwards of $2 billion in capital management initiatives post-merger. For now, the broker is forecasting dividends of ~$1.06 per share in FY 2021 and ~$1.18 per share in FY 2022. Based on the current Woolworths share price of $40.80, this will mean fully franked yields of 2.6% and 2.9%, respectively.
