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:
Macquarie Group Ltd (ASX: MQG)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $175.00 price target on this investment bank’s shares. The broker is expecting a reasonably flat quarterly update at its upcoming annual general meeting. This is due to its belief that some strong performing areas of the business, such as commodities, will be offset by foreign exchange headwinds. Nevertheless, the broker believes that Macquarie’s shares are attractively priced at the current level. Particularly in comparison to its global peers.
Morgan Stanley is forecasting a partially franked dividend of $5.50 per share in FY 2022 and then a $6.05 per share dividend in FY 2023. Based on the current Macquarie share price of $157.47, this will mean yields of 3.5% and 3.8%, respectively, over the next two years.
Ramsay Health Care Limited (ASX: RHC)
A note out of Ord Minnett reveals that its analysts have upgraded this private hospital operator’s shares to a buy rating with a slightly trimmed price target of $72.50. While the broker has reduced its earnings forecasts to reflect the lockdowns in Australia, it remains positive on the future thanks to strong vaccination rates in other markets it operates in. In addition to this, Ord Minnett suspects that the company may not have given up on acquiring Spire Healthcare in the UK.
For now, the broker is forecasting fully franked dividends per share of $1.99 in FY 2021 and then $2.62 in FY 2022. Based on the current Ramsay share price of $64.39, this implies yields of 3.1% and 4.1%, respectively, over the next two years.