The good news for income investors is that there are a large number of quality ASX 200 dividend shares to choose from on the Australian share market.
Two that have been tipped as best buys by analysts at Morgans in June are listed below. Here's what the broker is saying about them:
QBE Insurance Group Ltd (ASX: QBE)
Morgans thinks that this insurance giant could be an ASX 200 dividend share to buy in June.
It believes QBE's shares are trading an attractive level, especially considering how rate increases are still flowing through its insurance book and its cost out benefits are on the way. Combined with its strong balance sheet, the broker feels its shares are "inexpensive" right now. It explains:
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 8x FY24F PE.
The broker currently has an add rating and $16.50 price target on its shares.
As for income, Morgans is expecting dividends per share of approximately 80.4 cents in FY 2023 and 91 cents in FY 2024. Based on the current QBE share price of $15.12, this will mean yields of 5.3% and 6%, respectively.
Telstra Group Ltd (ASX: TLS)
This telco giant has also been given the thumbs up by analysts at Morgans this month.
Its analysts believe Telstra is an ASX 200 dividend share to buy due largely to its positive outlook.
Following a highly successful turnaround, the broker highlights Telstra's strong earnings momentum. It also notes its strong balance sheet and attractive valuation. It commented:
After a major turnaround, TLS has emerged in good shape with strong earnings momentum and a strong balance sheet. In late CY22 shareholders vote[d] on Telstra's legal restructure, which opens the door for value to be released. TLS currently trades on ~7x EV/EBITDA. However some of TLS's high quality long life assets like InfraCo are worth substantially more, in our view. We don't think this is in the price so see it as value generating for TLS shareholders. This, free option, combined with likely reputational damage to its closest peer, following a major cybersecurity incident, means TLS looks well placed for the year ahead.
Morgans has an add rating and $4.70 price target on Telstra's shares.
It is also expecting a fully franked dividends of 17 cents per share in FY 2023 and FY 2024. Based on the current Telstra share price of $4.35, this will mean yields of approximately 3.9%.
