These ASX 200 dividend shares have generous fully franked yields

Here are two top dividend shares…

| More on:
A man wearing glasses sits back in his desk chair with his hands behind his head staring smiling at his computer screens as the ASX share prices keep rising

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With interest rates unlikely to increase until 2023, the Australian share market looks set to remain one of the best places to generate a passive income for some time to come.

But which dividend shares should you buy to boost your income? Below are two dividend shares analysts have named as buys:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share to look at is Coles. It is of course one of the big two supermarket operators. It could be a top option for income investors thanks to its defensive qualities, solid growth prospects, and focus on automation.

In respect to the latter, Coles is constructing new smart distribution centres with automation giant Ocado in an effort to cut costs and boost its online business. If all goes to plan, Coles will be a much stronger business and well-placed for the future.

Citi is positive on its outlook. Its analysts are forecasting solid earnings and dividend growth over the coming years. For example, Citi has pencilled in fully franked dividends of 65 cents per share in FY 2022, 72 cents per share in FY 2023, and then 77 cents per share in FY 2024.

Based on the current Coles share price of $17.81, this will mean yields of 3.65%, 4%, and 4.3%, respectively.

Citi has a buy rating and $19.60 price target on its shares.

Westpac Banking Corp (ASX: WBC)

The Westpac share price has fallen heavily since the release of its full year results. While this is disappointing for shareholders, it could be a buying opportunity for everyone else.

The team at Morgans certainly believe this is the case and feel the selling has been severely overdone.

It commented: "WBC shares have been sold off heavily following the FY21 result announcement, such that out of the major banks, WBC is now trading on the lowest FY22F P/NTA multiple, the lowest FY22F P/E multiple and the highest FY22F dividend yield. Such multiples or yields could only be justified if WBC is a value trap, which we think it is not."

Morgans has therefore reiterated its add rating and $30.50 price target on the banking giant's shares. Its analysts are also forecasting fully franked dividends per share of $1.23 in FY 2022 and then $1.62 in FY 2023.

Based on the current Westpac share price of $20.72, this will mean yields of 5.9% and 7.8%, respectively.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 COLESGROUP DEF SET. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing

A man in a suit looks serious while discussing business dealings with a couple as they sit around a computer at a desk in a bank home lending scenario.
Dividend Investing

Forget term deposits and buy these ASX dividend shares in May

Analysts think these income options would be top picks for investors.

Read more »

Miner holding cash which represents dividends.
Dividend Investing

Invested $8,000 in Fortescue shares 5 years ago? Guess how much passive income you've banked!

Fortescue is popular among passive income investors for paying two fully franked dividends per year, even during COVID.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Dividend Investing

Hunting for passive income? Here's everything you need to know about the latest NAB dividend

NAB revealed its interim dividend payout this morning.

Read more »

A couple makes silly chip moustache faces and take a selfie on their phone.
Dividend Investing

I think these 2 high-yield ASX dividend shares are buys in May

These businesses offer significant passive income.

Read more »

Wife and husband with a laptop on a sofa over the moon at good news.
Dividend Investing

2 ASX dividend stocks to buy for juicy 5% to 8% yields

These shares are being named as buys for income investors by brokers.

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
Dividend Investing

3 growing ASX dividend shares to buy and hold

Analysts are feeling positive about these shares. Let's see what they are forecasting for them.

Read more »

Joyful woman at a beach on the Gold Coast with her arms spread out.
How to invest

How to bank $10,000 a year in passive income from these 3 top ASX shares

Here’s how I’d go about building a $10,000 passive income stream from these top ASX stocks.

Read more »

A woman relaxes on a yellow couch with a book and cuppa, and looks pensively away as she contemplates the joy of earning passive income.
ETFs

3 ASX ETFs to buy for passive income in May

Don't like stock picking but want passive income? Here are three funds that could help you.

Read more »