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:
DEXUS Property Group (ASX: DXS)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $11.95 price target on this property company’s shares. This follows news that DEXUS is acquiring $1.5 billion of industrial assets. The broker is a fan of the strategy and expects it to boost its income. As for dividends, Morgan Stanley has pencilled in dividends per share of 53 cents in FY 2022 and 55.5 cents in FY 2023. Based on the current DEXUS share price of $10.70, this will mean 5% and 5.2% yields, respectively.
Healius Ltd (ASX: HLS)
A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this healthcare company’s shares to $5.55. Macquarie believes that COVID-19 testing volumes will remain strong globally for some time to come and has increased its earnings estimates to reflect this. The broker has also pencilled in fully franked dividends per share of 19.5 cents in FY 2022 and 13.9 cents in FY 2023. Based on the current Healius share price of $4.90, this will mean yields of 4% and then a more modest 2.6%.
Insurance Australia Group Ltd (ASX: IAG)
Another note out of Macquarie reveals that its analysts have upgraded this insurance giant’s shares to an outperform rating with an improved price target of $5.70. its analysts believe the recent weakness in its share price is a buying opportunity. Macquarie also doesn’t expect IAG’s maximum event retention to be breached by the Victorian earthquake. As for dividends, the broker is forecasting fully franked dividends per share of 20 cents in FY 2022 and 23 cents in FY 2023. Based on the current IAG share price of $4.89, this will mean yields of 4.1% and 4.7%, respectively.