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 dividend shares that fit the bill:
National Australia Bank Ltd (ASX: NAB)
The rate cut by the RBA could be exactly what this big four ASX bank needs if it stops house prices falling and leads to credit growth again, combined with the effect of the APRA interest rate buffer change.
NAB is often seen as the cheapest of the big four ASX banks and with new management it could raise its performance to be a similar level of the others, meaning its valuation could rise to a similar level.
NAB is currently trading at under 12x FY20's estimated earnings with a grossed-up dividend yield of 8.9% based on an assumed upcoming payment of 83 cents per share.
G8 Education Ltd (ASX: GEM)
G8 is one of the country's leading childcare operators and it may have see light at the end of the tunnel with additional childcare centre supply into the sector easing and occupancy rising at its centres.
With a portfolio of hundreds of childcare centres it's hard to grow much by acquisition these days, underlying performance will be the most important factor, which is why occupancy growth is so pleasing and it can add a lot to the bottom line due to the high fixed costs of rent and wages. Government subsidies may also support G8's earnings over the medium-term.
G8 Education currently has a trailing grossed-up dividend yield of 6%
New Hope Corporation Limited (ASX: NHC)
Coal miners usually don't strike me as dividend shares, but New Hope's dividend has been pleasing over the past few years.
The company has been operating for over 65 years and it's one of the cheapest coal producers, which means it can remain profitable even as the coal price falls.
New Hope is progressing with its New Acland Coal Mine Stage 3, but the coal price has fallen in recent weeks sending the New Hope share price down. But this also boosts the potential dividend yield.
New Hope has a trailing dividend yield of 6.2%.
