Analysts say buy these growing ASX 200 dividend shares for passive income

These ASX shares have been tipped to provide investors with a growing stream of dividends.

| More on:
A smiling woman with a handful of $100 notes, indicating strong dividend payments

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

If you're wanting to boost your income with some ASX 200 dividend shares, then you might want to consider the two listed below.

Both have been tipped to provide investors with a growing stream of fully franked dividends. Here's what you need to know about these dividend shares:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share to look at is Coles.

It is one of the big two supermarket operators with over 800 supermarkets. It also owns over 900 liquor retail stores and over 700 Coles express stores. However, the latter are in the process of being divested.

Coles isn't settling for this, though. As well as growing its network further, the company is aiming to make its operations more efficient through cost cutting and its focus on automation with Ocado.

Citi is very positive on its outlook and has a buy rating with a $20.20 price target on its shares. It is also forecasting fully franked dividends per share of 69 cents in FY 2023 and 71 cents in FY 2023.

Based on the current Coles share price of $18.00, this implies yields of 3.7% and 3.85%, respectively.

Suncorp Group Ltd (ASX: SUN)

Another ASX 200 dividend share that has been tipped as a buy is Suncorp.

It is one of Australia's leading insurance and banking companies and the owner of brands including AAMI, Apia, Bingle, GIO, Shannons, Suncorp, and Vero brands.

Morgans is positive on Suncorp and currently has an add rating and $14.44 price target on its shares.

It likes the company due to its efficiency program, attractive valuation, and generous yield. In respect to the latter two, the broker commented that "[w]ith SUN trading on 11.5x FY24F earnings and a 6% dividend yield, we see it as reasonable value at current levels."

At present, the broker is forecasting fully franked dividends per share of 77.7 cents in FY 2023 and 87.8 cents in FY 2024. Based on the current Suncorp share price of $11.94, this will mean yields of 6.5% and 7.35%, 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 positions in and has recommended Coles Group. 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 sits on sofa pondering a question.
Dividend Investing

Do Fortescue shares beat the big banks for dividend income?

Is Fortescue's 10%-plus dividend yield too good to pass up?

Read more »

A mining worker wearing a white hardhat and a high vis vest stands on a platform overlooking a huge mine, thinking about what comes next.
Dividend Investing

BHP shares have fallen out of the global top 20 dividend payers. Here's why

Global dividends continue to climb.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Dividend Investing

Buy these impressive ASX dividend shares for market-beating returns

Analysts are tipping these shares to provide great yields and major upside.

Read more »

Man jumping in water with a floatable flamingo, symbolising passive income.
Dividend Investing

Why I'd buy these top ASX dividend shares before the end of 2025

Now could be the right time to buy these dividend stocks.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Dividend Investing

Brokers say these ASX dividend stocks are buys right now

Income investors might want to check out these buy-rated stocks this week.

Read more »

$100 Australian notes on top of each other.
Dividend Investing

These buy-rated ASX dividend stocks offer 7%+ yields

Analysts expect these buy-rated stocks to provide income investors with big yields.

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

3 outstanding ASX dividend shares to buy next week

Analysts are tipping these shares to offer big returns over the next 12 months.

Read more »

A male oil and gas mechanic wearing a white hardhat walks along a steel platform above a series of gas pipes in a gas plant
Dividend Investing

Should I buy Santos shares for dividend income?

Santos shares have been steadily upping their dividends since 2020.

Read more »