Brokers say these ASX 200 shares are buys for income investors

Check out these buy-rated ASX 200 dividend shares this month…

| More on:
An ASX dividend investor holds a fanned out bunch of $40 Australian cash notes and wonders whether any ASX lithium shares pay dividends

Image source: Getty Images

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

Are you looking for dividends to boost your income? If you are, then you may want to check out the two ASX 200 dividend shares listed below that brokers have named as buys.

Here's why analysts rate them highly right now:

Suncorp Group Ltd (ASX: SUN)

The first ASX 200 dividend share that has been named as a buy is Suncorp. It is one of Australia's leading insurance and banking companies and name behind a range of brands including AAMI, Apia, Bingle, GIO, Shannons, Suncorp, and Vero.

The team at Morgans is positive on the company due to its efficiency program and strong underlying business trends. In respect to the former, the broker expects Suncorp to "reap the full benefits of its efficiency program in FY23."

At present, the broker is expecting this to lead to fully franked dividends per share of 77.5 cents in FY 2023 and 80 cents in FY 2024. Based on the current Suncorp share price of $11.89, this will mean yields of 6.5% and 6.7%, respectively.

Morgans currently has an add rating and $13.98 price target on its shares.

Woolworths Limited (ASX: WOW)

Another ASX 200 dividend share that has been named as a buy is Woolworths.

Goldman Sachs is a fan of the retail giant due to its strong market position and digital leadership. The broker expects this to support further market share and margin gains.

In addition, its analysts were supportive of Woolworths' decision to partially sell down its Endeavour Group Ltd (ASX: EDV) stake this week to raise investment funds. Particularly given speculation that it will use the funds to increase its exposure to the growing pet care market.

For now, Goldman is forecasting fully franked dividends of $1.02 per share in FY 2023 and $1.13 per share in FY 2024. Based on the current Woolworths share price of $34.29, this will mean yields of 3% and 3.3%, respectively.

Goldman has a conviction buy rating and $41.70 price target on the company's shares.

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

a woman wearing fashionable clothes and jewellery checks her phone with a satisfied smile on her face in a luxurous home setting.
Dividend Investing

3 ASX dividend shares to buy instead of the big four banks

Analysts think these dividend shares could be top picks instead of the banks.

Read more »

A woman blows what looks like colourful dust at the camera, indicating a positive or magic situation.
Index investing

Does the Vanguard Australian Shares ETF (VAS) pay fully franked dividends?

This index fund can boost your returns with franking credits...

Read more »

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Energy Shares

Is Woodside stock a buy for its 8% dividend yield?

Woodside's dividends look fat, but proceed with caution...

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

3 smart ASX dividend shares to buy with $500 now

Analysts think these stocks would be great options for income investors working on a budget.

Read more »

Happy young couple saving money in piggy bank.
Dividend Investing

I'd invest $10,000 in these ASX dividend shares to keep growing my wealth as rates fall

This would be my approach to dealing with a return to pitiful savings rates.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
Dividend Investing

Want a 6% yield? 3 ASX shares to buy today

Analysts are predicting these shares to deliver the goods for investors.

Read more »

Two excited woman pointing out a bargain opportunity on a laptop.
Dividend Investing

2 great ASX income shares I'd buy right now for the long term

I’m excited by the potential of these dividend stocks.

Read more »

A man in his late 60s, retirement age, emerges from the Australian surf carrying a surfboard under his arm and wearing a wetsuit.
Opinions

Here's how much ASX dividend income I'm aiming for in retirement

I’m using passive income stocks as a path to financial independence.

Read more »