Are you looking for some dividend options for your portfolio in January? If you are, check out the two ASX shares listed below.
Here’s why these ASX dividend shares have been tipped to as buys this month:
Coles Group Ltd (ASX: COL)
The first ASX 200 dividend share for investors to consider is this retail giant. As well as being one of the big two supermarket operators with over 800 stores, Coles operates over 900 liquor retail stores, and over 700 Coles express stores.
But management isn’t resting on its laurels. It continues to expand its network and invest in its online business. The latter includes the construction of new smart distribution centres with automation giant Ocado. All in all, this is expected to underpin solid earnings and dividend growth over the 2020s.
Citi is a fan of Coles. The broker currently has a buy rating and $19.60 price target on its shares. As for dividends, it is forecasting fully franked dividends of 65 cents per share in FY 2022 and 72 cents per share in FY 2023. Based on the current Coles share price of $16.35, this will mean yields of 4% and 4.4%, respectively.
Suncorp Group Ltd (ASX: SUN)
Another ASX 200 dividend share to look at is Suncorp. Through a range of brands it helps Australians build their futures and protect what matters by offering insurance, banking, and wealth products and services.
It could be a good option for income investors due to its attractive valuation and generous forecast dividend yields. In respect to the latter, the team at Goldman Sachs is expecting fully franked dividends per share of 61 cents in FY 2022 and 73 cents in FY 2023.
Based on the current Suncorp share price of $11.60, this will mean yields of 5.25% and 6.3%, respectively. And with Goldman slapping a $13.74 price target on its shares, there’s plenty of upside potential on offer here as well.