Are you in the market for some ASX 200 dividend stocks? If you are, check out the two listed below that are from very different sides of the market.
Here's why analysts are tipping these as buys for income investors:
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Lottery Corporation Ltd (ASX: TLC)
The first ASX 200 dividend stock that could be a buy is Lottery Corporation. It is the lottery company behind OZ Lotto, Powerball, and Keno.
The team at Citi is positive on the company. This is due to its defensive qualities and recent price increases. It said:
The Lottery Corporation (TLC) lottery earnings can be volatile depending on jackpots but are defensive over time with no correlation to the business cycle. We expect last year's Oz Lotto changes to result in a material revenue lift as the jackpot sequence normalises. We believe the market underestimates the uplift to the contribution margin following the increase in the commission rate and cut to third party digital commissions.
In respect to dividends, the broker is forecasting a 15 cents per share dividend in FY 2023 and 18 cents per share dividend in FY 2024. This will mean fully franked yields of 2.85% and 3.4%, respectively.
Citi has a buy rating and a $5.70 price target on its shares.
Rio Tinto Ltd (ASX: RIO)
Rio Tinto could be another ASX 200 dividend stock to buy next week.
That's the view of Goldman Sachs, which is very positive on the mining giant. It recently said:
We continue to rate RIO a Buy (on CL) based on: Compelling relative valuation: trading at c. ~0.95x NAV (A$133.7/sh) vs. peers (BHP ~1.05xNAV and FMG ~1.5xNAV) and c. ~6x 2023E EBITDA at GSe base case. Attractive FCF and dividend yield: FCF/dividend yield in 2023E (c. 7%/4% yield) & 2024E (c. 6%/5% yield) driven by our bullish view on aluminium and copper prices.
As for income, Goldman is expecting fully franked dividends per share of US$3.49 (A$5.30) in FY 2023 and then US$4.05 (A$6.15) in FY 2024. Based on the latest Rio Tinto share price of $114.83, this will mean yields of 4.6% and 5.35%, respectively.
The broker currently has a buy rating and a $126.90 price target on the miner's shares.
