There are plenty of ASX dividend shares to choose from on the Australian share market.
The good news is that brokers have done the hard work for you and picked out a couple that they rate very highly.
Let's see what they are recommending right now:
Coles Group Ltd (ASX: COL)
According to a note out of Morgans, its analysts have responded to the supermarket giant's quarterly update by upgrading its shares to an add rating with a $16.60 price target. The broker made the move largely on valuation grounds. It explains:
With a forecast 12-month TSR of 15%, we upgrade our rating to Add. COL is now trading on 20.1x FY24F PE and 4.4% yield. With management taking steps to reduce total loss and supply chain investments on track with expectations in August, we think the stock is looking more attractive following the recent pullback in the share price.
As mentioned above, Morgans is forecasting a fully franked 4.4% dividend yield in FY 2024. It then expects an increase to 4.6% in FY 2025.
QBE Insurance Group Ltd (ASX: QBE)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $18.09 price target on this insurance giant's shares.
The broker believes there are positive read-throughs for QBE from an update by a rival in the United States last week. It said:
We think the continued strong rate in NA commercial should bode favourably for QBE – consistent with Travelers. Chubb also says rate trends are ahead of loss cost inflation which is positive read through for margins to the extent CAT / Reinsurance cost pressures can be offset.
In light of this, Goldman feels that QBE will be in a position to pay dividends that equate to yields of 6.1% in FY 2024 and then 6.4% in FY 2025.
