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:
Super Retail Group Ltd (ASX: SUL)
Super Retail has a grossed-up dividend yield of 7.5%.
The company was one of the ones investors thought might struggle in an Australian retail downturn, yet in the first 16 weeks of FY20 the company delivered total sales growth of 4.2% and like for like sales growth of 3.2%, although this has come at the expense of profit margin.
The Macpac acquisition increased its earnings diversification and its dividend has grown in each of the past few years.
New Hope Corporation Limited (ASX: NHC)
New Hope has a grossed-up dividend yield of 11.3%.
The company is one of the largest and cheapest-producing coal miners in Australia. It increased its holding of Bengalla in December 2018 which increases its underlying earning power.
Coal is obviously not a big growth industry these days, but Asian demand for coal for baseload power is expected to support the commodity over the next decade or two.
The dividend has grown strongly since 2016.
National Australia Bank Ltd (ASX: NAB)
NAB likely has a grossed-up dividend yield of 8.2%.
The Royal Commission cost NAB its CEO and chairman, but analysts seem to like the new leadership team.
House prices in Melbourne and Sydney are recovering strongly. This is likely to help credit growth and may reduce the risk of NAB bad debts.
A dividend cut is likely for the next result, but that will probably be the new regular payment.
Foolish takeaway
I'm not a fan of investing in banks, coal isn't my cup of tea and retail shares may still be on shaky ground. I wouldn't actually want to invest in any of these shares at today's prices.
