It can be an interesting insight to know what brokers think of an ASX dividend share. The problem is that a single broker can be wrong or biased.
If you can get a consensus among brokers about which shares are best, then that may give a clue about what to buy and what to avoid.
Every so often MarketIndex collates the broker recommendations of 450 ASX shares and totals the buys, holds and sells for those shares. The higher or lower the average score the more of a strong buy, buy, hold, sell or strong sell that share is.
The below ideas have dividend yields above 5% and a market capitalisation above $1 billion. However, a high dividend yield can indicate a falling share price or limited growth prospects.
Here are three of the ASX shares that fit the bill:
National Australia Bank Ltd (ASX: NAB)
The big four bank has a trailing grossed-up dividend yield of 11.8%. It offers the biggest dividend yield out of all of the blue chips on the ASX, although it depends if this can be maintained.
I like that NAB works closely with some of the best growing businesses such as REA Group Limited (ASX: REA), Afterpay Touch Group Ltd (ASX: APT) and Xero Limited (ASX: XRO).
As long as NAB is able to reach the level of capital required by APRA and maintain its level of earnings then the dividend could also be maintained for the foreseeable future.
Suncorp Group Ltd (ASX: SUN)
The large insurer has a trailing ordinary grossed-up dividend yield of 8%.
Suncorp generates regular revenue thanks to the payment of its insurance premiums and borrowers repaying their mortgages. However, major natural hazards can cause a big dent to profit in any particular year, such as the recent storm in Sydney.
Over the longer-term, some commentators have questioned what effect automated cars will have on the car insurance industry, which could hurt the profit generated by AAMI and Bingle.
Vicinity Centres Re Ltd (ASX: VCX)
Vicinity Centres has a trailing income yield of 6.2%.
It's the owner of a large array of shopping centres in local areas, DFOs and owns a big stake of the key Chadstone shopping centre.
In my opinion, Chadstone shopping centre is the best retail asset in the country. However, Vicinity's smaller assets, except the DFOs, are letting it down. This could be seen with Chadstone's value increasing by $42.4 million at 31 December 2018, but the overall Vicinity portfolio declined in value by $37 million due to poor regional performance.
Foolish takeaway
All three of the above shares offer attractive income yields, however I don't think any of them are good buys for the long-term because of the question marks surrounding the reliability of their earnings.
