The Australian share market is home to a good number of shares offering attractive dividend yields.
But which ones should you buy over others? Here are two that brokers rate as buys right now:
Elders Ltd (ASX: ELD)
The first ASX 200 dividend share that has been rated as a buy is Elders. It is a leading agribusiness company offering services to rural and regional customers across the ANZ region.
Despite delivering a strong full year result last week, the company's shares crashed deep into the red.
The team at Goldman Sachs believe this was a mistake by investors and has reiterated its conviction buy rating with a price target of $18.40. It said:
We view the share price reaction today (-23%) as unwarranted. The fundamentals of this company remain unchanged, and strong in our view. The result was near the top of guidance, delivering 39% EBIT growth (vs. guidance of 30-40%).
While heavy rainfall poses a short term headwind, Goldman remains positive on the future and believes "ELD is very well positioned to grow through the cycle."
It expects this to underpin fully franked dividends per share of 53 cents in FY 2023 and 57 cents in FY 2024. Based on the current Elders share price of $10.30, this will mean yields of 5.1% and 5.5%, respectively.
Westpac Banking Corp (ASX: WBC)
A second ASX 200 dividend share that could be a top option for income investors is Westpac. It is of course Australia's oldest bank and one of the big four.
The team at Morgans recently responded to the bank's full year results by retaining its add rating with a price target of $25.80. It commented:
We viewed Westpac Banking Corp's FY22 performance as at or above expectations. The interest rate leverage in the Net Interest Margin (NIM) was the key positive, while the key negative (but not unexpected) was the upsized FY24 cost guidance.
After reviewing the results, the broker is now forecasting fully franked dividends of $1.53 per share in FY 2023 and $1.59 per share in FY 2024. Based on the current Westpac share price of $23.62, this will mean yields of 6.5% and 6.7%, respectively.
