3 ASX dividend shares brokers rate as buys right now

Could these income shares be buys today?
The post 3 ASX dividend shares brokers rate as buys right now appeared first on The Motley Fool Australia. –

When it comes to ASX dividend shares, there are certainly a lot to choose from if an investor is seeking income. Most companies on the S&P/ASX 200 Index (ASX: XJO) pay a dividend, which immediately gives you a few options, to say the least.

So how does one find the right needles in this haystack of potential income-producing investments? Taking a look at what some of the ASX’s expert investors reckon can always be of assistance.

So here are 3 ASX dividend shares that are currently rated as ‘buys’ by some of the ASX’s most well-known brokers.

3 ASX dividend shares top brokers rate as buys today

National Australia Bank Ltd (ASX: NAB)

As an ASX bank, NAB’s reputation as one of the ASX’s heaviest dividend payers has long been standing. Just today, we charted this bank’s journey from paying 60 cents in dividends per share in 2021 to $1.27 per share in 2021. Broker Goldman Sachs currently rates NAB shares as a buy with a 12-month share price target of $31.15.

Goldman likes NAB’s exposure to the business banking sector, which it sees as stronger than some of the other ASX banks. It also sees NAB’s strong capital position as a positive and notes its current dividend payout ratio of 68%, which indicates its dividends could grow further in the coming years. NAB shares currently have a dividend yield of 4.58%.

South32 Ltd (ASX: S32)

ASX 200 diversified miner South32 is another share that Goldman Sachs rates as a buy right now, a ‘conviction buy’, no less. Goldman currently rates South32 with a 12-month share price target of $4.40. That implies a potential upside of almost 24% on current pricing.

While South32 may have a current dividend yield of 1.84%, Goldman reckons the miner will be able to pay out much stronger dividends going forward on the back of higher commodity prices.

It sees the current South32 share price as offering a forward dividend yield of between 12 and 13% for both FY2022 and FY 2023.

Coles Group Ltd (ASX: COL)

Coles is our last dividend share to check out today. As my Fool colleague James discussed this morning, Coles is currently rated as an ‘add’ by broker Morgans. Morgans is seeing Coles at a share price of $19.90 in a year’s time, implying a potential upside of roughly 10%.

But Morgans is also expecting Coles to shell out 61 cents per share in fully franked dividends for FY 2022, equalling the payouts shareholders have enjoyed over the past 12 months. That implies Coles’ current yield of 3.38% is sustainable going forward.

The post 3 ASX dividend shares brokers rate as buys right now appeared first on The Motley Fool Australia.

Should you invest $1,000 in Coles right now?

Before you consider Coles, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Coles wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

What is the NAB (ASX:NAB) fully franked dividend worth in November?

Top broker gives its verdict on the NAB (ASX:NAB) share price

Is the Coles (ASX:COL) share price a buy in the lead up to Christmas?

5 things to watch on the ASX 200 on Friday

South32 (ASX:S32) share price climbs as $2bn copper mine stake gets green light

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!