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:
Costa Group Holdings Ltd (ASX: CGC)
According to a note out of Credit Suisse, its analysts have retained their outperform rating and $3.40 price target on this horticulture company's shares. Credit Suisse likes Costa due to its positive growth outlook over the coming years due to the expansion of production. In the near term, it is cautiously optimistic on its Morocco operations in 2020 following an assessment of weather patterns. In FY 2020 the broker has forecast a dividend of 8.5 cents per share. This equates to a forward fully franked dividend yield of approximately 3.5%.
Insurance Australia Group Ltd (ASX: IAG)
Analysts at Citi have upgraded this insurance giant's shares to a buy rating with an increased price target of $8.75. According to the note, the broker believes that Insurance Australia Group is well-placed for growth from FY 2021 onwards. This could be supportive of dividend increases and further share buybacks. In the meantime, though, Citi has forecast a dividend of 32 cents per share in FY 2020. This works out to be a forward fully franked 4.2% dividend yield for investors.
Metcash Limited (ASX: MTS)
A note out of Goldman Sachs reveals that its analysts have held firm with their buy rating and $3.05 price target on this wholesale distributor's shares. According to the note, the broker remains positive on Metcash despite the recent loss of the 7-Eleven contract. It expects the company to pay a ~13.6 cents per share dividend to shareholders in FY 2020. Based on its current share price, this implies a fully franked 4.8% dividend yield.
