Fortunately, in this low interest rate environment, there are countless dividend shares for investors to choose from on the Australian share market.
But with so many to choose from, it can be hard to decide which ones to buy. To narrow things down, I have picked out three ASX dividend shares brokers think investors should buy:
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Macquarie Group Ltd (ASX: MQG)
According to a note out of Citi, its analysts have retained their buy rating and $226.00 price target on this investment bank's shares. Although Macquarie's shares have run hard this year, the broker believes they are still good value given its positive outlook. Citi is also forecasting dividends per share of $6.42 in FY 2022 and then $6.10 in FY 2023. Based on the current Macquarie share price of $202.27, this will mean yields of 3.2% and 3%, respectively.
QBE Insurance Group Ltd (ASX: QBE)
A note out of UBS reveals that its analysts have retained their buy rating and lifted their price target on this insurance giant's shares to $15.00. UBS believes that QBE could be positioned for sustainable earnings growth thanks to favourable industry tailwinds. This includes a positive outlook for interest rates. UBS expects dividends per share of 57 cents in FY 2021 and 81 cents in FY 2022. Based on the current QBE share price of $11.72, this implies yields of 4.9% and 6.9% over the next two financial years.
South32 Ltd (ASX: S32)
Another note out of Citi reveals that its analysts have retained their buy rating and $4.30 price target on this mining giant's shares. Citi believes that South32 is well-placed to benefit from higher aluminium prices. The broker expects this to be driven by a deep aluminium market deficit amid increasing demand and tighter supply. Citi believes this will underpin fully franked dividends of 30 cents per share in FY 2022 and then 29 cents per share in FY 2023. Based on the latest South32 share price of $3.43, this will mean yields of 8.7% and 8.45%, respectively.
