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Fortunately for income investors, there are countless dividend shares for them to choose from on the Australian share market.
But with so many options, 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:
According to a note out of Macquarie, its analysts have retained their outperform rating and $60.00 price target on this mining giant’s shares. This follows the company’s presentation at a major industry conference this week. Macquarie came away from the event feeling confident in the Big Australian’s outlook, highlighting its potash plans and iron ore expansion options. As for dividends, Macquarie expects the miner to pay fully franked dividends of $5.01 per share in FY 2022 and $3.67 per share in FY 2023. Based on the current BHP share price of $46.23, this will mean yields of 10.8% and 7.9%, respectively.
Another note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed their price target on this healthcare company’s shares to $5.20. The broker remains positive on Healius due to its valuation and expectation for a recovery in pathology volumes in FY 2023. In respect to dividends, Macquarie has pencilled in fully franked dividends of 17.3 cents per share in FY 2022 and 18 cents per share in FY 2023. Based on the current Healius share price of $4.19, this will mean yields of 4.1% and 4.3%, respectively.
Mineral Resources Limited (ASX: MIN)
Analysts at Credit Suisse have commenced coverage on this mining and mining services company’s shares with an outperform rating and $73.00 price target. Credit Suisse is positive on Mineral Resources due to its exposure to iron ore and particularly lithium. It also expects its pipeline of mining projects to support its growth in the coming years. And while the broker is only forecasting an 86 cents per share dividend in FY 2022, it expects a big increase to $4.41 per share in FY 2023. Based on the latest Mineral Resources share price of $59.33 this will mean fully franked yields of 1.45% and 7.4%, respectively.