If you're looking for dividend shares to buy this week, then the two listed below could be worth checking out.
Both are from very different sides of the market but have a couple of things in common – buy ratings from brokers and attractive forecast dividend yields.
Here's what you need to know about them:
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Macquarie Group Ltd (ASX: MQG)
This investment bank could be an ASX 200 dividend share to buy right now according to analysts at Morgans.
The broker currently has an add rating and $222.80 price target on the company's shares, which implies potential upside of over 22% for investors from current levels.
Morgans believes Macquarie is a top pick for investors and has it on its best ideas list again this month. This is due to its long term growth potential, with the broker commenting:
We continue to like MQG's exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while it continues to gain market share in Australian mortgages.
In respect to dividends, the broker is expecting partially franked dividends of $8.28 per share in FY 2023 and $7.64 per share in FY 2024. Based on the current Macquarie share price of $181.63, this will mean yields of 4.55% and 4.2%, respectively.
South32 Ltd (ASX: S32)
Another ASX 200 dividend share that has been named as a buy is South32.
It is one of Australia's largest miners with exposure to a range of commodities including aluminium, copper, manganese, and nickel.
Goldman Sachs is positive on South32 and has a buy rating and $4.90 price target on the mining giant's shares. It highlights the company's "improving FCF outlook on higher production & commodity prices (base metals and met coal)." It adds:
We assume the share buyback continues (at ~US$250mn p.a) and S32 pays out 50% of earnings (40% ordinary, 10% special dividend component) with the FY23 full year result. On our estimates, S32 is on a supportive dividend yield of c. 5% in FY23, increasing to 14% in FY24.
In respect to dividends, as mentioned above, Goldman is expecting fully franked yields in the region of 5% in FY 2023 and then 14% in FY 2024.
