2 first-rate ASX 200 dividend shares experts rate as buys

Here are a couple of top ASX 200 dividend shares analysts say are buys…

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Are you looking for dividend shares to buy? If you are, then the two listed below could be quality options.

Analysts have recently rated these dividend shares as buys. Here's what you need to know about them:

Transurban Group (ASX: TCL)

The first ASX 200 dividend share that could be a top option for income investors next week is Transurban.

It is one of the world's leading toll road operators with a portfolio of important roads and a pipeline of development projects to drive future growth.

The team at Morgans is positive on the company. So much so, it has Transurban on its best ideas list with a $13.85 price target. The broker likes the company due to regional population, employment growth, urbanisation, and positive exposure to inflation. It explained:

TCL owns a pure play portfolio of toll road concession assets located in Melbourne, Sydney, Brisbane, and North America. This provides exposure to regional population and employment growth and urbanisation. Given very high EBITDA margins, earnings are driven by traffic growth (with recovery from COVID) and toll escalation (roughly 70% by at least CPI and approximately one-quarter at a fixed c.4.25% pa). We think TCL will continue to be attractive to investors given its market cap weighting (important for passive index tracking flows), the high quality of its assets, management team, balance sheet, and growth prospects

In respect to dividends, Morgans expects dividends per share of 53.4 cents in FY 2023 and then 65.8 cents in FY 2024. Based on the current Transurban share price of $12.54, this implies yields of 4.25% and 5.25%, respectively.

Woolworths Limited (ASX: WOW)

Another ASX 200 dividend share to consider is this retail conglomerate.

Woolworths could be a top option thanks to its strong retail brands, entrenched customer base, positive exposure to inflation, and defensive qualities. The latter were on display for all to see during the pandemic and could come in handy if the Australian economy falls into a recession.

In addition, the team at Goldman Sachs highlights the company's digital and omni-channel advantage. The broker expects this advantage to drive further market share and margin gains in the coming years. Goldman said:

Despite a still volatile year ahead and noise in pcp data, most industry suppliers note that WOW is still firmly in a more advantaged position on omni-channel capabilities. This is largely attributed to the company's early investments/advantage in digital and its more agile omni-channel supply chain network development.

It is partly for this reason that Goldman currently has a conviction buy rating and $42.70 price target on the company's shares.

As for dividends, Goldman is forecasting fully franked dividends per share of $1.07 in FY 2023 and $1.16 in FY 2024. Based on the current Woolworths share price of $33.76, this will mean yields of 3.2% and 3.4%, 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.

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