2 highly rated ASX 200 dividend shares that could be buys

These ASX 200 dividend shares could be buys

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Luckily for income investors in this low interest rate environment, the ASX 200 is home to a number of quality shares that are forecast to pay generous dividends in the near term.

Two ASX 200 dividend shares that could be in the buy zone are listed below:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share for income investors to look at is BHP. This mining giant could be a great option due to its very positive dividend outlook for the coming years.

BHP's positive outlook is being underpinned by its world class operations, favourable commodity prices, and strong balance sheet. These have positioned BHP to return the majority of its significant free cash flow to shareholders in the near term.

One broker that expects this to be the case is Macquarie. Its analysts are bullish on BHP due partly to iron ore prices, which are well ahead of consensus forecasts. Macquarie has an outperform rating and $60.00 price target on the company's shares.

As for dividends, Macquarie is forecasting fully franked dividends of ~$3.72 in FY 2021 and $3.61 per share in FY 2022. Based on the latest BHP share price of $53.36, this will mean generous yields of 7% and 6.8% over the next two years.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 dividend share to look at is Telstra. This is thanks to its increasingly positive outlook from its 5G leadership, cost cutting, rational competition, and its corporate restructure and asset monetisation plans.

And although the Telstra share price has been in fine form this year, a number of analysts still see a lot of value in it.

For example, Goldman Sachs remains very positive on Telstra and currently has a buy rating and $4.20 price target on its shares. The broker also believes the telco giant is well-placed to continue paying its current 16 cents per share fully franked dividend until FY 2023. After which, the broker is forecasting a long-awaited dividend increase to 18 cents per share in FY 2024.

Based on the Telstra share price of $3.80, this will mean yields of 4.2% until FY 2023 and then 4.7% in FY 2024.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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