Are you looking for ASX 200 dividend shares to buy for an income boost? If you are, then it could be a good idea to check out the two listed below that have been named as buys.
Here's what analysts are saying about them:
Graincorp Ltd (ASX: GNC)
The first ASX 200 dividend share that could be a buy is Graincorp. It is Australia's leading integrated grain and edible oils company servicing customers in more than 50 countries.
Bell Potter believes that Graincorp would be a top option for investors right now. Particularly given its undemanding valuation. The broker commented:
Our Buy rating is unchanged. When we consider the uplift in baseline PBTDA and improved corporate net cash position GNC is already trading at levels consistent with the previous seasonal lows. Trading at 5.9-6.7x through the cycle PBTDA, valuation is undemanding, with multiples likely to contract further as cash is released in lower crop volume years (i.e. unrealised trading cash earnings and lower working capital).
In respect to dividends, its analysts are forecasting dividends per share of 41 cents in FY 2023 and 22 cents in FY 2024. This represents yield of 5.5% and 3%, respectively.
Bell Potter also sees huge upside potential for its shares with its buy rating and $9.45 price target.
Transurban Group (ASX: TCL)
Another ASX 200 dividend share that has been named as a buy is Transurban. It is a leading toll road operator with a collection of important roads including CityLink in Melbourne and the Cross City Tunnel in Sydney.
Citi is feeling very positive about the company and believes it is well-positioned to pay dividends ahead of guidance. It explains:
We believe TCL's FY24 DPS guidance of 62c is conservative and we forecast DPS of 63.4c given strong toll price growth, traffic growth on new road completions and a slower increase in debt costs in FY24 given a small proportion (c. 3%) of the debt book is maturing this year TCL is currently trading in-line with historic EV/EBITDA multiples at 22.5x, but we see upside given the strong EBITDA growth outlook (c.12% CAGR between Fy24-FY26). Retain Buy
Citi is forecasting dividends per share of 63 cents in FY 2024 and then 64 cents in FY 2025. Based on the current Transurban share price of $13.33, this will mean yields of 4.7% and 4.8%, respectively.
The broker currently has a buy rating and a $15.90 price target on its shares.
