Income investors on the lookout for ASX 200 dividend shares to buy in September might want to check out the two listed below.
That's because both of these big-name ASX 200 dividend shares have been named as buys by analysts at Goldman Sachs. Here's what the broker is saying about them:
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ANZ Group Holdings Ltd (ASX: ANZ)
Analysts at Goldman Sachs believe that ANZ Bank would be a great option for investors in September.
The broker likes ANZ due to the positive outlook of its institutional business and attractive valuation. It said:
We remain Buy rated (on CL) on ANZ given: i) We have seen evidence of success for ANZ in improving the profitability of its Institutional business (the division's 1H23 PPOP RoRWA increased to 2.2%, from a 2H16 trough of 1.2%). Coupled with current market competitive dynamics, which we would characterize as a relative tailwind for Institutional NIMs, vis-à-vis Retail, ANZ's business mix appears well-placed, and ii) Our assessment of the profitability of this division concludes that these return improvements are largely sustainable. Therefore, with the stock trading on 6.6x 12-month fwd PPOP, which is a 28% discount to peers vs 15-yr average discount of 14%, we stay Buy (CL).
The broker is expecting fully franked dividends of $1.62 per share each year through to FY 2025. Based on the current ANZ share price of $25.33, this implies potential dividend yields of 6.4% for income investors.
Goldman has a buy rating and a $27.55 price target on its shares.
Rio Tinto Ltd (ASX: RIO)
Goldman Sachs also believes that Rio Tinto could be an ASX 200 dividend share to buy in September.
It likes the mining giant due to its compelling valuation compared to rivals and its big dividend yield. The broker explains:
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.
In respect to dividends, Goldman is expecting fully franked dividends per share of US$3.49 (A$5.38) in FY 2023 and then US$4.05 (A$6.25) in FY 2024. Based on the latest Rio Tinto share price of $112.90, this will mean yields of 4.75% and 5.5%, respectively.
Goldman Sachs currently has a buy rating and a $126.90 price target on the miner's shares.
