If you're looking for dividends for your income portfolio, then it could be a good idea to check out the two shares named below.
These ASX 200 dividend shares have been rated as buys by analysts at Morgans. Here's what the broker is saying about them:
QBE Insurance Group Ltd (ASX: QBE)
The first ASX 200 dividend share that Morgans has tipped as a buy is insurance giant QBE.
The broker is feeling positive about the company's outlook thanks to rising premiums and cost reductions. It explained:
With strong rate increases still flowing through QBE's insurance book, and further cost-out benefits to come, we expect QBE's earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~9.1x FY23F PE
In respect to dividends, Morgans expects QBE to pay a 41.5 cents per share dividend in FY 2022 and then a 76.5 cents per share dividend in FY 2023. Based on the latest QBE share price of $13.43, this equates to yields of 3.1% and 5.7%, respectively.
Morgans has an add rating and $14.93 price target on QBE's shares.
South32 Ltd (ASX: S32)
Another ASX 200 dividend share that Morgans has named as a buy is South32.
It is a mining giant with a diverse collection of operations providing exposure to a range of commodities including aluminium, copper, manganese, and nickel.
Morgans remains positive on South32 despite its soft start to the financial year. The broker sees it as well-placed to benefit from China's recovery from the pandemic and likes its portfolio transformation and strong balance sheet. Its analysts said:
Slow start to the year but S32 remains in robust shape, with clear exposure to a recovery scenario for China growth. […] We expect S32 to continue transitioning its portfolio further towards base metals, with a strong balance sheet supporting potential for further M&A. We view S32 as a key large-cap (ex-iron ore) sector pick.
As for dividends, Morgans is expecting South32 to pay fully franked dividends per share of 23 cents in FY 2023 and 21.6 cents in FY 2024. Based on the current South32 share price of $4.00, this will mean yields of 5.75% and 5.4%, respectively.
The broker has an add rating and $5.30 price target on the miner's shares.
