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 two ASX dividend shares brokers think investors should buy:
Monash IVF Group Ltd (ASX: MVF)
According to a note out of the Macquarie equities desk, its analysts have initiated coverage on this fertility treatment company's shares with an outperform rating and $1.00 price target. The broker notes that trading conditions are very favourable in the IVF industry and its outlook is positive.
In addition to this, Macquarie highlights that the company's balance sheet is strong thanks to last year's capital raising. Macquarie is forecasting a 4.1 per share fully franked dividend in both FY 2021 and FY 2022. Based on the current Monash IVF share price of 83.7 cents, this will mean attractive yields of 4.9% for income investors.
Sandfire Resources Ltd (ASX: SFR)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating and $8.55 price target on this copper producer's shares. The broker was pleased with Sandfire Resources' strong finish to the year, with copper and gold production at DeGrussa surprising to the upside. Sandfire Resources produced 70,845 metric tons of copper during the 12 months, above its guidance of 67,000 to 70,000 tons.
Credit Suisse believes the company is well-placed to grow its earnings and dividend. In respect to the latter, it is forecasting fully franked dividends of 39.2 cents per share in FY 2021 and then 40.1 cents per share in FY 2022. With the Sandfire Resources share price currently trading at $6.80, this will mean yields of 5.75% and 5.9%, respectively, over the next two financial years.
