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:
Aventus Group (ASX: AVN)
According to a note out of Morgans, its analysts have retained their add rating and lifted their price target on this retail park-focused property company's shares to $3.26. The broker notes that Aventus' properties have increased in value and that its funds from operations will be stronger than expected in FY 2021. As for dividends, Morgans is expecting 17.5 cents per share in FY 2021 and then 17.8 cents per share in FY 2022. Based on the latest Aventus share price of $3.14, this will mean yields of 5.6% and 5.7%, respectively.
Baby Bunting Group Ltd (ASX: BBN)
A note out of Citi reveals that its analysts have a buy rating and $6.22 price target on this baby products retailer's shares. While it suspects that some retailers will have been negatively impacted by recent lockdowns, it feels Baby Bunting will be less affected. This is due to its strong market position and its much lower exposure to discretionary spending. In addition to this, the broker remains positive on its growth outlook thanks to store expansion plans both here and in New Zealand. Citi is forecasting fully franked dividends of 15.3 cents per share this year and 18 cents per share next year. So, with the Baby Bunting share price currently fetching $5.80, this implies yields of 2.6% and 3.1%, respectively.
Magellan Financial Group Ltd (ASX: MFG)
Another note out of Morgans reveals that its analysts have retained their add rating but trimmed their price target on this fund manager's shares to $58.05. While the broker was a touch disappointed with its fourth quarter fund outflows, it remains positive on Magellan. This is partly due to its reasonable valuation and long term growth potential from new product launches. Morgans expects fully franked dividends of $2.10 per share in FY 2021 and then $2.31 per share in FY 2022. Based on the current Magellan share price of $51.73, this represents yields of 4% and 4.4%, respectively.
