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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Mineral Resources Limited (ASX: MIN)
According to a note out of Macquarie, its analysts have retained their outperform rating and lifted their price target on this iron ore and lithium company's shares to $73.00. The broker made the move after increasing its iron ore forecasts materially. This is expected to lead to strong earnings in the near term and generous dividend payments from Mineral Resources. In respect to the latter, it is forecasting dividends of $3.32 per share and $3.05 per share over the next two financial years. Based on the current Mineral Resources share price of $48.87, this will mean fully franked yields of 6.8% and 6.2%, respectively.
Mirvac Group (ASX: MGR)
Analysts at Morgan Stanley have retained their overweight rating and lifted their price target on this property company's shares to $3.30. According to the note, the broker believes that the market is undervaluing Mirvac's office portfolio. Particularly given its exposure to the recovering Sydney market. Morgan Stanley expects dividends of 9.9 cents per share in FY 2021 and 11.2 cents per share in FY 2022. Based on the current Mirvac share price of $2.95, this will mean yields of 3.35% and 3.8%, respectively.
Suncorp Group Ltd (ASX: SUN)
A note out of Citi reveals that its analysts have retained their buy rating and $11.80 price target on this insurance and banking giant's shares. According to the note, although Citi has reduced its earnings estimates slightly to reflect insurance claims from the severe weather in Victoria, it still believes there is scope for a special dividend in FY 2021. It also suspects that there could be collective provision releases coming that might not be factored into estimates presently. Citi is forecasting dividends of 61 cents per share in FY 2021 and 58 cents per share in FY 2022. With the Suncorp share price currently fetching $11.32, this implies fully franked yields of 5.4% and 5.1%, respectively, over the next two years.
