Buy Westpac and this ASX 200 dividend stock for income: analysts

These top dividend stocks have been given the thumbs up by brokers.

| More on:
A young woman sits with her hand to her chin staring off to the side thinking about her investments.

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

sdf

Thankfully for income investors, there are plenty of dividend stocks to choose from on the ASX 200 index.

But two that could be standout picks for investors right now are listed below. Here's why analysts rate these big-name dividend stocks as buys:

Telstra Group Ltd (ASX: TLS)

Analysts at Morgans believe that Telstra is an ASX 200 dividend stock to buy right now. The broker has an add rating and $4.70 price target on the telco giant's shares.

Morgans believes that the company's outlook is the best it has been in years. It highlights that "[t]elco has the strongest tailwinds in a decade with an increasingly rational market, price rises across the majors and the criticality of telco increasingly recognised." In addition, it notes that there is "the potential for InfraCo value release following the legal restructure."

All in all, the broker is expecting this to allow Telstra to pay 17 cents per share fully franked dividends in both FY 2023 and FY 2024. Based on the current Telstra share price of $4.37, this will mean yields of 3.9% for income investors.

Westpac Banking Corp (ASX: WBC)

Over at Goldman Sachs, its analysts say that Westpac is an ASX 200 dividend stock to buy right now. Its analysts currently have the banking giant on their conviction list with a buy rating and $24.67 price target.

Although the broker was disappointed to see Westpac walk away from its cost cutting targets recently, its analysts still expect Australia's oldest bank to deliver broadly flat costs in the coming years. Which will still be a good outcome in the current environment.

It is for this reason that Goldman expects to "see WBC outperform peers in this relatively difficult inflationary environment."

Overall, the broker expects this to lead to fully franked dividends of 140 cents per share in both FY 2023 and FY 2024. Based on the current Westpac share price of $21.23, this equates to yields of 6.6% in both years.

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Telstra Group. The Motley Fool Australia has recommended Westpac Banking. 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 couple makes silly chip moustache faces and take a selfie on their phone.
Dividend Investing

Maximising franked dividend income: Here's why I own these 2 ASX shares

I make exceptions for these two income shares.

Read more »

A group of young people smiling and watching TikTok on their mobile phones
Dividend Investing

Buy Telstra, Woolworths, and this ASX dividend stock

Analysts think these stocks could be top picks for income investors.

Read more »

A little girl holds broccoli over her eyes with a big happy smile.
Dividend Investing

1 practically perfect Australian stock down 25% to buy for long-term income

There aren't many quality stocks that are down 25% from their highs.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

2 compelling ASX dividend shares with yields above 6%

These stocks have generous dividend yields.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Dividend Investing

Aiming for rock-solid retirement income? I'd buy these two ASX shares

These stocks are excellent options for consistent payments.

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Dividend Investing

These ASX dividend stocks could supercharge your passive income

Let's see which stocks are being tipped as buys by analysts this month.

Read more »

A woman with a magnifying glass adjusts her glasses as she holds the glass to her computer screen and peers closely at it.
Dividend Investing

This is the ASX share in my portfolio with the biggest dividend yield

This stock offers a big dividend yield.

Read more »

Broker written in white with a man drawing a yellow underline.
Dividend Investing

Brokers say these ASX 200 dividend shares are top buys

Here are three shares that brokers think income investors should be buying.

Read more »