2 ASX 200 dividend shares analysts rate as buys

Here are two ASX 200 dividend shares rated as buys….

| More on:

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

If you're looking for ASX 200 dividend shares to buy, then you may want to check out the two listed below.

Both have recently been named as buys by analysts. Here's why they rate them highly this month:

Broker looking at the share price on her laptop with green and red points in the background.

Image source: Getty Images

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

The first ASX 200 dividend share that analysts are positive on is ANZ Bank.

The big four bank was recently tipped as a buy by analysts at Citi. The broker currently has a buy rating and $29.00 price target on the bank's shares

Citi appears to believe the acquisition of the banking operations of Suncorp Group Ltd (ASX: SUN) could be a boost if everything goes to plan.

If integrated successfully, we believe the deal looks to represent fair value, with the acquisition PE of 13.8x offset by substantial cost synergies (~35% of SUN Bank cost base), funding cost benefits (due to ANZ's AA rating) and lower capital intensity (a move to AIRB accreditation) over time.

As for dividends, the broker is forecasting fully franked dividends of $1.42 per share in FY 2022 and $1.65 per share in FY 2023. Based on the current ANZ share price of $24.02, this will mean yields of 5.9% and 6.9%, respectively.

BHP Group Ltd (ASX: BHP)

Another ASX 200 dividend share to look at is mining giant BHP.

The Big Australian could be a top option for income investors thanks to the high levels of free cash flow it is generating from its world class and diverse operations.

Morgans certainly thinks this is the case. It has an add rating and $48.40 price target on its shares.

The broker commented:

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP's operations also supplies some defence against direct Covid-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.

In respect to dividends, the broker is expecting a $3.97 per share dividend in FY 2022 and then a $3.88 per share dividend in FY 2023. Based on the latest BHP share price of $38.83, this equates to massive fully franked yields of 10.2% and 10%, respectively.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

$50 dollar Australian notes in the back pocket of jeans, representing dividends.
Dividend Investing

3 ASX dividend shares yielding 9% (or more)

These dividend-paying shares offer a great yield and potential for growth.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Dividend Investing

2 ASX dividend shares with yields above 7%

Large yields and potential capital growth. What’s not to love?

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

These buy-rated ASX dividend stocks are forecast to pay 6%+ yields in 2027

Analysts have buy ratings on these high-yield stocks. Let's see what they offer.

Read more »

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Dividend Investing

3 ASX dividend shares to double up on right now

Analysts have buy ratings on these top income stocks.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

Passive income investors: This ASX stock has an 8% yield and monthly payouts

The shares climbed higher on Tuesday.

Read more »

Happy woman working on a laptop.
Dividend Investing

A top ASX dividend stock to buy on a pullback

With a strong track record and steady dividends, this stock would be very attractive at cheaper prices.

Read more »

A mother helping her son use a laptop at the family dining table.
Dividend Investing

3 of the safest ASX 200 dividend stocks in Australia

For investors seeking dependable dividends, these ASX 200 shares could provide a strong foundation for long-term income.

Read more »

A couple working on a laptop laugh as they discuss their ASX share portfolio.
Dividend Investing

A dependable ASX dividend stock to buy with $20,000 right now

This ASX blue-chip may not be flashy, but its steady earnings and dividends could make it a dependable income pick.

Read more »