Thankfully, in this low interest rate environment, the Australian share market is home to a range of shares that are expected to provide attractive yields to investors in 2021.
If you're interested in adding a few to your portfolio, then you may want to look at the ones listed below. Here's why they could be dividend shares to buy:
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Australia and New Zealand Banking GrpLtd (ASX: ANZ)
Although the ANZ share price has been a very strong performer in 2021, it doesn't appear to be too late for investors to snap up shares. According to a recent note out of Morgans, its analysts have retained their add rating and lifted their price target on its shares to $33.50. This compares to the latest ANZ share price of $28.16.
But even better, is that despite rising 22% since the start of the year, its shares are still expected to provide income investors with generous yields in the near term.
For example, Morgans is forecasting fully franked dividends of $1.45 and $1.63 per share over the next two years. Based on the current ANZ share price, this will mean yields of 5.15% and 5.8%, respectively.
Wesfarmers Ltd (ASX: WES)
Another option to consider is Wesfarmers. It is the conglomerate behind a number of quality businesses such as Bunnings, Catch, Kmart, and Officeworks.
Wesfarmers has been performing very positively in FY 2021, delivering solid sales and profit growth during the first half. This has been driven by growth across the majority of its businesses but particularly from the Bunnings business. The hardware giant has been benefiting from home improvement-related government stimulus and the booming housing market.
One broker that is a fan is Goldman Sachs. It currently has a buy rating and $59.70 price target on its shares. This compares to the latest Wesfarmers share price of $54.73.
The broker is also forecasting fully franked dividends of $1.88 per share in FY 2021 and $1.94 per share in FY 2022. This represents attractive yields of 3.5% and 3.6%, respectively.
