Top brokers name 2 ASX dividend shares to buy today

Here are two dividend shares brokers have named as buys…

| More on:
A woman holds a lightbulb in one hand and a wad of cash in the other

Image source: Getty Images

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 over others. To narrow things down for you, I have picked out two ASX dividend shares brokers think income investors should buy:

Medibank Private Ltd (ASX: MPL)

According to a note out of Credit Suisse, its analysts have retained their outperform rating and lifted their price target on this private health insurance company’s shares to $3.50. The broker made the move after increasing its earnings estimates to reflect positive investment market movements and improving trading conditions in the private health insurance industry.

As for dividends, Credit Suisse expects 13 cents per share in FY 2021 and then 14 cents per share in FY 2022. Based on the latest Medibank share price of $3.25, this implies attractive fully franked yields of 4% and 4.3%, respectively, for investors over the next couple of years.

National Australia Bank Ltd (ASX: NAB)

A note out of Macquarie reveals that its analysts have upgraded this banking giant’s shares to an outperform rating with a $28.00 price target. According to the note, the broker upgraded its shares on valuation grounds following a period of underperformance. In addition to this, the broker notes that NAB has a strong capital position. It feels this should allow NAB to absorb any negative impacts of the AUSTRAC investigation and a potential economic slowdown.

In respect to dividends, Macquarie is forecasting fully franked dividends of $1.20 per share in FY 2021 and then $1.25 per share in FY 2022. Based on the latest NAB share price of $26.32, this will mean generous yields of 4.6% and 4.75%, respectively, for income investors over the next two years.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing