Tuesday , November 12 2019
Home / australia / Leading brokers name 3 ASX dividend shares to buy // Motley Fool Australia

Leading brokers name 3 ASX dividend shares to buy // Motley Fool Australia



When it comes to dividends there are countless options for investors to choose from on the Australian share market.

There are so many that it can be difficult to decide which ones to buy. To narrow things down I have picked out three dividend stocks that brokers think investors should buy this month:

BHP Group Ltd (ASX: BHP)

A note out of the Macquarie desk equities reveals that its analysts have retained their outperform rating but cut the price target on this mining giant's shares slightly to $ 39.00. According to the note, the broker was happy with BHP's performance in the first quarter. It was also pleased to see the company retain its production and cost guidance for the full year. In light of this, the broker continues to see value in BHP's shares at this level. In FY 2020 Macquarie estimates that BHP will pay a 218 cents per share dividend, which equates to a fully franked 6.25% dividend yield. I agree with Macquarie and feel BHP would be a good option for investors looking for exposure to the sector's resources.

Another note out of the Macquarie desk equities reveals that its analysts have retained their outperform rating and lifted the target price on these annuities company's shares to $ 8.50 after its first quarter update. According to the note, Macquarie was pleased with Challenger's performance in the quarter, particularly with respect to Japanese annuities and guaranteed income products. In addition, Macquarie believes that its earnings will stabilize in the near term. Just as long as the RBA does make several more cash rate cuts. In FY 2020 Macquarie expects a dividend of 35.5 cents per share. This equates to a fully franked 4.6% yield. Whilst it does look good, it is important to see the company return to growth before considering an investment.

National Australia Bank Ltd (ASX: NAB)

According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating and $ 30.40 price target on this banking giant's shares. Goldman has been looking into APRA's amended capital treatment of investments in subsidiaries. The good news is that it sees no impact to NAB. As a result, it remains bullish and continues to rate it as the best pick in the sector. Goldman prefers NAB because of its belief that it has superior revenue momentum. It also expects NAB to deliver the strongest underlying earnings per share growth over the next three years. The broker estimates that its shares offer a fully frank 5.7% FY 2020 dividend yield at present. I agree that NAB would be a good option for income investors.

And don't miss these dividend shares that Edward Vesely has just slapped buy ratings on. They could be among the best dividend stocks on offer on the ASX right now.

Top 3 Dividend Shares To Buy For 2020

When Edward Vesely – our resident dividend expert – has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 147%) and Collins Food (up 105%) under his belt, Edward is building an enviable following amongst investors who are planning for retirement.

In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying increasing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.

Best of all, Edward's “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.

Click here now to access this free report.


Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares and has Challenger Limited recommended. The Motley Fool Australia owns shares of National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authored by Scott Phillips.


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