When it comes to ASX dividend shares, there are certainly a lot to choose from if an investor is seeking income. Most companies on the S&P/ASX 200 Index (ASX: XJO) pay a dividend, which immediately gives you a few options, to say the least.
So how does one find the right needles in this haystack of potential income-producing investments? Taking a look at what some of the ASX’s expert investors reckon can always be of assistance.
So here are 3 ASX dividend shares that are currently rated as ‘buys’ by some of the ASX’s most well-known brokers.
3 ASX dividend shares top brokers rate as buys today
National Australia Bank Ltd (ASX: NAB)
As an ASX bank, NAB’s reputation as one of the ASX’s heaviest dividend payers has long been standing. Just today, we charted this bank’s journey from paying 60 cents in dividends per share in 2021 to $1.27 per share in 2021. Broker Goldman Sachs currently rates NAB shares as a buy with a 12-month share price target of $31.15.
Goldman likes NAB’s exposure to the business banking sector, which it sees as stronger than some of the other ASX banks. It also sees NAB’s strong capital position as a positive and notes its current dividend payout ratio of 68%, which indicates its dividends could grow further in the coming years. NAB shares currently have a dividend yield of 4.58%.
South32 Ltd (ASX: S32)
ASX 200 diversified miner South32 is another share that Goldman Sachs rates as a buy right now, a ‘conviction buy’, no less. Goldman currently rates South32 with a 12-month share price target of $4.40. That implies a potential upside of almost 24% on current pricing.
While South32 may have a current dividend yield of 1.84%, Goldman reckons the miner will be able to pay out much stronger dividends going forward on the back of higher commodity prices.
It sees the current South32 share price as offering a forward dividend yield of between 12 and 13% for both FY2022 and FY 2023.
Coles Group Ltd (ASX: COL)
Coles is our last dividend share to check out today. As my Fool colleague James discussed this morning, Coles is currently rated as an ‘add’ by broker Morgans. Morgans is seeing Coles at a share price of $19.90 in a year’s time, implying a potential upside of roughly 10%.
But Morgans is also expecting Coles to shell out 61 cents per share in fully franked dividends for FY 2022, equalling the payouts shareholders have enjoyed over the past 12 months. That implies Coles’ current yield of 3.38% is sustainable going forward.