There are a lot of ASX dividend shares to choose from on the Australian share market.
So many it can be hard to decide which ones to buy.
But don't worry if you're paralysed by choice. That's because to narrow things down, I have picked out two that brokers rate as buys.
Here's what they are recommending:
Suncorp Group Ltd (ASX: SUN)
The first ASX dividend share that analysts have given the thumbs up to is Suncorp.
It is one of Australia's leading insurance companies with a portfolio of brands including AAMI, Apia, Bingle, Suncorp, and Vero.
Goldman Sachs is feeling very positive about the company. It recently commented:
We are favourably disposed to Suncorp, noting in large part the tailwinds that exist in the general insurance market – i.e., very strong renewal premium rate increases and the benefit of higher investment yields. We think the strong rate momentum that SUN is getting should likely offset volume pressures as they optimise their risk exposures in certain portfolios such as home but also likely policy lapses / buy downs.
Goldman expects this to underpin fully franked dividends per share of 75 cents in FY 2024 and 80 cents in FY 2025. Based on the current Suncorp share price of $14, this will mean dividend yields of 5.35% and 5.7%, respectively.
Goldman has a buy rating and a $15.13 price target on its shares.
Transurban Group (ASX: TCL)
Brokers have also named Transurban as an ASX dividend share to buy.
It is a leading toll road operator with a collection of roads including CityLink in Melbourne and the Cross City Tunnel in Sydney.
Citi is feeling very positive about the company's outlook and believes it could be positioned to pay dividends ahead of guidance. It explains:
We believe TCL's FY24 DPS guidance of 62c is conservative and we forecast DPS of 63.4c given strong toll price growth, traffic growth on new road completions and a slower increase in debt costs in FY24 given a small proportion (c. 3%) of the debt book is maturing this year TCL is currently trading in-line with historic EV/EBITDA multiples at 22.5x, but we see upside given the strong EBITDA growth outlook (c.12% CAGR between Fy24-FY26). Retain Buy
Citi is forecasting dividends per share of 63 cents in FY 2024 and then 65 cents in FY 2025. Based on the current Transurban share price of $12.92, this will mean yields of 4.9% and 5%, respectively.
The broker currently has a buy rating and a $15.90 price target on its shares.