With interest rates at such low levels, at least for now, income investors may want to look at dividend shares.
Here's why these analysts rate these two ASX 200 dividend shares as buys:
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Coles Group Ltd (ASX: COL)
The first ASX dividend share for investors to consider is retail giant, Coles.
The supermarket could be a top option thanks to its favourable dividend policy, long track record of same-store sales growth, strong market position, and sprawling store network.
Coles has more than 800 supermarkets, more than 900 liquor retail stores, and more than 700 Coles Express stores. But Coles management isn't settling for that. Coles 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 (LON: OCDO).
Citi is positive on Coles. The broker currently has a buy rating and a $19.60 price target on its shares.
Citi is forecasting fully franked dividends of 65 cents per share in FY 2022 and 72 cents in FY 2023. Based on the current Coles share price of $16.55, this will mean yields of 3.9% and 4.35% respectively.
Commonwealth Bank of Australia (ASX: CBA)
Another ASX 200 dividend share for investors to consider is Australia's largest bank, CBA. Its shares have bounced back strongly from recent lows following a better than expected half-year result. However, it may not be too late to invest.
That's the view of Bell Potter, which last week upgraded CBA shares to a buy with a $108.00 price target.
The broker commented:
Cash NPAT was nearly on par with 2H21, a great outcome. There was also investment in operational execution (in line with the bank's strategic priorities) coupled with a return of excess capital to shareholders of $2bn.
Thanks to its strategic strengths of scale, brand, and diversification, which are supported by irreplaceable infrastructure comprising more than 1,100 branches, 3,800 Australia Post agencies, and nearly 3,600 ATMs, Bell Potter appears confident on CBA's future. It is forecasting earnings and dividend growth over the coming years.
Bell Potter is forecasting fully franked dividends per share of $3.87 in FY 2022 and $4.07 in FY 2023. Based on the current CBA share price of $99.49, this will mean yields of 3.9% and 4.1% respectively.
