The Australian share market is home to a good number of shares offering attractive dividend yields.
But which ones should you buy over others? Here's are two that the team at Macquarie Group Ltd (ASX: MQG) rate highly and expect to provide big yields:
Aurizon Holdings Ltd (ASX: AZJ)
The first ASX dividend share to look at is Aurizon. It is Australia's largest rail freight operator, transporting more than 250 million tonnes of Australian commodities each year.
The team at Macquarie are positive on the company and currently have an outperform rating and $4.27 price target on its shares. The broker believes Aurizon is well-placed with almost $1 billion in balance sheet capacity to drive its growth through acquisitions.
Macquarie is forecasting partially franked dividends of 28.1 cents per share in FY 2022 and then 29.5 cents per share in FY 2023. Based on the latest Aurizon share price of $3.69, this represents yields of 7.6% and 8%, respectively.
BHP Group Ltd (ASX: BHP)
Another ASX dividend share to look at is BHP. The Big Australian's shares have come under significant pressure recently due to the well-documented weakness in iron ore prices. However, it is worth noting that prices are still notably higher than its production costs and its diverse operations are cushioning some of the blow.
It is for this reason that Macquarie sees the recent weakness in the BHP share price as a buying opportunity. So much so, last week it retained its outperform rating and lofty $56.00 price target on the mining giant's shares.
Its analysts are also forecasting generous dividend payments in the coming years. Dividends per share of ~$3.70 and ~$2.90 are pencilled in for FY 2022 and FY 2023, respectively. With the BHP share price currently fetching $37.72, this will mean yields of 9.8% and 7.7% over the next two financial years.
