If you're looking for ASX 200 dividend shares to buy, then you might want to check out the two listed below.
Both have recently been named as buys by experts. Here's why they rate them highly:
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Medibank Private Ltd (ASX: MPL)
The first ASX 200 dividend share that could be a top option for income investors this month is Medibank.
It is of course the health insurance giant that has been delivering services to Australians for 45 years and now has 2 million policyholders across its AHM and Medibank brands.
The team at Citi is positive on the company. Particularly given its expectation for another strong performance from its private health insurance business in FY 2023 and its positive exposure to higher interest rates.
Citi is expecting this to lead to Medibank paying fully franked dividends of 15.9 cents per share in FY 2023 and 16.3 cents per share in FY 2024. Based on the current Medibank share price of $3.52, this will mean yields of 4.5% and 4.6%, respectively.
Citi also sees value in its shares. It currently has a buy rating and $4.00 price target on them.
Telstra Corporation Ltd (ASX: TLS)
Another ASX 200 dividend share to consider is Telstra. This telco giant has come back in favour with income investors this year after the company returned to growth at long last.
For example, in FY 2022, although Telstra posted a 4.7% decline in revenue, it was still able to deliver an 8.4% increase in underlying EBITDA to $7.3 billion. This was driven by its key mobile business, which reported EBITDA growth of 21.2% over the prior corresponding period.
Much to the delight of shareholders, this allowed the Telstra board to increase its dividend for the first time in years.
And with Telstra now embarking on its T25 strategy, which is targeting high-teens underlying earnings per share (EPS) compound annual growth rates from FY 2021 to FY 2025, further increases could be on the horizon.
The team at Morgan Stanley expect this to be the case. They are forecasting fully franked dividends per share of 17 cents in FY 2023 and 18 cents in FY 2024. Based on the latest Telstra share price of $3.85, this will mean yields of 4.4% and 4.7%, respectively.
Morgan Stanley has an overweight and $4.60 price target on the company's shares.
