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 analysts rate highly right now:
Aurizon Holdings Ltd (ASX: AZJ)
The first ASX dividend share to look at is Australia's largest rail freight operator. It connects miners, primary producers, and industry with international and domestic markets via its extensive national rail and road network.
One leading broker that is positive on the company is Macquarie. Its analysts currently have an outperform rating and $4.32 price target on its shares.
The broker believes Aurizon has ~$1 billion of balance sheet capacity that can be used to drive growth through acquisitions.
In addition, the broker is forecasting very generous dividends in the near term. It has pencilled in 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 $3.90, this will mean yields of 7.2% and 7.6%, respectively.
Coles Group Ltd (ASX: COL)
Another ASX dividend share to look at is Coles. Over the last 107 years, Coles has gone from a single store in Collingwood, Victoria to one of the largest and most recognisable brands in Australia. At the last count, the company was operating over 800 supermarkets, over 900 liquor retail stores, and over 700 Coles express stores.
Looking ahead, the company still has room to grow its network. In addition, Coles is aiming to make its operations more efficient through cost cutting plans and its focus on automation. This includes investing heavily in new distribution centres with automation giant Ocado.
All in all, this is expected to underpin solid growth in earnings and dividends over the long term.
For now, the team at Coles are forecasting a fully franked dividends of 61 cents per share in FY 2022 and then 62 cents per share in FY 2023. Based on the current Coles share price of $16.94, this will mean yields of 3.6% and 3.65%, respectively.
Morgans has an add rating and $19.80 price target on Coles' shares.
