Are you looking for some dividend options for your portfolio? If you are, check out the two ASX 200 shares listed below.
Here's why these ASX dividend shares have been tipped to as buys:
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Rio Tinto Limited (ASX: RIO)
The first ASX 200 dividend share to look at is mining giant Rio Tinto. It could be a top option thanks to strong commodity prices, which are underpinning bumper free cash flows this year.
Goldman Sachs is a fan of the company and has a buy rating and $135.10 price target on its shares. It likes Rio Tinto due to its attractive valuation, strong free cash flow, production growth potential, and compelling low emission aluminium exposure through its ELYSIS inert anode technology. The broker believes this technology could be worth billions.
As for dividends, the broker is forecasting fully franked dividends of approximately US$9.00 per share in FY 2022 and FY 2023. Based on the current Rio Tinto share price of $109.50 and current exchange rates, this will mean yields of approximately 11.5%.
Telstra Corporation Ltd (ASX: TLS)
Another ASX 200 dividend share that could be a top option for income investors is telco giant, Telstra. Especially considering that its outlook is now the most positive it has been in over a decade.
For example, earlier this year the company released its half year results and reported underlying earnings growth for the first time in many years.
Pleasingly, thanks to the success of its T22 strategy and its very promising upcoming T25 strategy, Telstra is expecting to deliver solid and sustainable earnings growth over the coming years.
It is thanks largely to this that the team at Morgans currently have an add rating and $4.56 price target on the company's shares.
Morgans also continues to forecast fully franked dividends per share of 16 cents in FY 2022 and FY 2023. Based on the current Telstra share price of $3.92, this will mean yields of 4.1% for investors.
