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Top brokers name 3 ASX dividend shares to buy this week

When it comes to dividend shares there are countless options for investors to choose from on the ASX.

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

Macquarie Group Ltd (ASX: MQG)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $143.00 price target on this investment bank’s shares. The broker appears pleased with Macquarie’s performance in the first half and is confident it will either meet or beat its full year guidance. The broker estimates that Macquarie will pay a $5.85 per share dividend in FY 2020, which equates to a partially franked 4.3% dividend yield. I agree with Morgan Stanley and would be a buyer of Macquarie’s shares.

Tabcorp Holdings Limited (ASX: TAH)

Analysts at UBS have retained their buy rating and $5.90 price target on this gaming company’s shares. According to the note, the broker’s research indicates that Tabcorp’s share of the wagering app market grew to 21% during the September quarter. In addition to this, it estimates that its lotteries app also delivered solid market share growth. Overall, the broker appears confident this will support solid earnings growth in FY 2020 and FY 2021. It has pencilled in a dividend of 21 cents per share this year. This works out to be a fully franked 4.3% dividend yield. Whilst I’m not as bullish as UBS, I think Tabcorp could be a decent option for income investors.

Westpac Banking Corp (ASX: WBC)

A note out of Morgans reveals that its analysts have retained their add rating but trimmed the price target on this banking giant’s shares to $31.50. According to the note, Westpac fell short of its expectations with its full year result. Its dividend cut to 80 cents per share was also more than it forecast. Furthermore, the broker was surprised by the size of its capital raising and feels it may now be over capitalised. Nevertheless, it was pleased with its asset quality and NIM, and feels its shares are good value at the current level. Based on its forecast for a dividend of $1.60 per share in FY 2020, Westpac’s shares provide a forward fully franked 5.9% dividend yield. I agree with Morgans and feel now would be a good time to consider buying shares.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. We Fools may not all hold the same opinions, but we all believe that considering 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). Authorised by Scott Phillips.