If you're wanting to boost your income portfolio with some dividend shares, then the two listed below could be worth considering.
Here's what you need to know about these ASX 200 dividend shares:
Image source: Getty Images
Coles Group Ltd (ASX: COL)
The first ASX 200 dividend share to consider buying is Coles. Thanks to its position as one of the big two supermarket operators, Coles has been able to continue growing its sales, earnings, and dividends at a solid rate during the pandemic.
Positively, this trend is expected to continue over the long term due to its strong market position, cost cutting, and focus on automation. The latter has seen the company invest heavily in new distribution centres with Ocado. This is expected to boost its supply chain and online business.
Goldman Sachs is positive on the company. It recently put a buy rating and $19.40 price target on its shares and is forecasting dividends per share of 62 cents in FY 2021 and 67 cents in FY 2022.
Based on the current Coles share price of $18.31, this implies yields of 3.4% and 3.7%, respectively, over the next two years.
Transurban Group (ASX: TCL)
Another ASX dividend share to consider is this leading toll road operator. Transurban's portfolio comprises 17 roads in Australia and four in North America. In addition, the company has a significant project pipeline across its networks.
While lockdowns and restrictions across the country are inevitably having an impact on traffic volumes, as per previous lockdowns, traffic is expected to bounce back once trading conditions return to normal. And with Australia's vaccine rollout finally gathering pace, these sorts of disruptions may be a thing of the past in 2022. This could make Transurban a top recovery investment option for investors.
One broker that sees Transurban as a top option is Ord Minnett. Last week it retained its buy rating but trimmed its price target slightly to $15.50. Its analysts are expecting a big dividend increase next year. They are forecasting dividends of 36.5 cents per share in FY 2021 and then 48.4 cents per share in FY 2022.
Based on the current Transurban share price of $13.53, this will mean yields of 2.7% and 3.6%, respectively.
