If you're an income investor on the lookout for some new additions, then you may want to check out the two ASX 200 dividend shares listed below.
Here's why these giants could be in the buy zone:
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Commonwealth Bank of Australia (ASX: CBA)
The first ASX 200 dividend share to consider is Commonwealth Bank. Australia's largest bank could be a top option due to its leadership position in the sector, the economic rebound from COVID, and the improving outlook for interest rates.
While some analysts believe Commonwealth Bank's shares are expensive, the team at Bell Potter appear to believe they deserve to trade at a premium and continue to see value in them at the current level. So much so, the broker recently upgraded its shares to a buy rating with a $108.00 price target.
Bell Potter is positive on its outlook, it commented: "Despite the misgivings of the market and especially COVID-19's Omicron strain, CBA sees FY22 as a strong year. The unemployment (and underemployment rate) are the lowest since 2008 and Australian household accumulated savings are stronger than ever (likewise the rate at which wage growth in anticipated). Inflation is likely to increase in due course (and that's a good thing for all banks) while non-mining investment including infrastructure continue to hold up reasonably well. The bank has again bounced back from its lows and is on its way back to its usual top line growth potential."
As for dividends, the broker 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 $94.71, this will mean yields of 4.1% and 4.3% respectively.
Wesfarmers Ltd (ASX: WES)
Another ASX 200 dividend share to look at is Wesfarmers. This conglomerate has one of the highest quality retail portfolios in Australia, which is supported by a range of industrial businesses and even a lithium mining operation.
The team at Morgans is positive on Wesfarmers. In response to its recent half year update, the broker retained its add rating but trimmed its price target slightly to $58.50.
It said: "Despite ongoing uncertainty in the operating environment, we think WES is well-placed to benefit when conditions improve and continue to view the stock as a core portfolio holding for long-term investors."
In respect to dividends, the broker is forecasting fully franked dividends of $1.62 per share in FY 2022 and then $1.81 per share in FY 2023. Based on the current Wesfarmers share price of $47.75, this will mean yields of 3.4% and 3.8%, respectively.
