Brokers say these ASX 200 dividend shares are buys

Big dividend yields are expected from these income shares.

| More on:

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

Income investors who are on the lookout for some ASX 200 dividend shares to buy might want to check out the two named below.

That's because brokers have recently put buy ratings on their shares and are tipping very attractive yields. Here's what you need to know:

Smiling woman holding Australian dollar notes in each hand, symbolising dividends.

Image source: Getty Images

QBE Insurance Group Ltd (ASX: QBE)

The first ASX 200 dividend share that brokers are positive on is insurance giant QBE.

Goldman Sachs is tipping the company's shares as a buy with an $18.09 price target.

The broker believes that rates "earned over the next 12 months will like be well ahead of moderating inflation to offset reinsurance / perils cost pressure and likely support improving underlying trends."

In respect to dividends, the broker is forecasting payouts of 42 US cents per share in FY 2023, 60 US cents per share in FY 2024, and 62 US cents per share in FY 2025. Based on the current QBE share price of $15.09, this will mean dividend yields of 4.4%, 6.3%, and 6.5%, respectively.

Super Retail Group Ltd (ASX: SUL)

Analysts at Morgans think that Super Retail could be an ASX 200 dividend share to buy with a $15.00 price target.

The broker is positive on the Rebel and Super Cheap Auto owner and recently lifted its earnings estimates to reflect a better-than-expected margin performance in FY 2023.

As for income, the broker isn't ruling out another special dividend in FY 2024. It said: "SUL declared a 25c special dividend [in FY 2023], and at this stage we think it will declare another one this time next year."

The broker is forecasting fully franked dividends per share of 89 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $11.47, this will mean generous yields of 7.75% and 6.4%, respectively.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Super Retail Group. 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

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

1 ASX dividend stock down 30% I'd buy right now

This business is trading at a great price with a good dividend yield…

Read more »

Woman laying with $100 notes around her, symbolising dividends.
Dividend Investing

How much could a $50,000 ASX share portfolio pay in dividends?

Dividend investing can turn an ASX portfolio into a growing income stream.

Read more »

A boy is about to rocket from a copper-coloured field of hay into the sky.
Dividend Investing

2 ASX income stocks with rocketing dividends

For me, dividend growth trumps yield.

Read more »

An older couple use a calculator to work out what money they have to spend.
Dividend Investing

100,720 shares of this high-yield ASX dividend stock pay income equal to the Age Pension

Generating a full income from dividends sounds appealing, but how much do you actually need?

Read more »

Australian dollar notes in businessman pocket suit, symbolising ex dividend day.
Dividend Investing

2 ASX shares with dividend yields above 7%

Large yields could be very appealing right now.

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Dividend Investing

1 ASX dividend stock down 50% I'd buy

This ASX dividend stock has been under pressure. But looking ahead, there are signs the story could be starting to…

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Share Market News

How much do I need to invest in ASX shares to earn a $500 monthly passive income?

A $500 per month passive income is more achievable than you'd think.

Read more »

Growth of ASX share price represented by tiny beans stalk shooting up into the sky
Dividend Investing

3 ASX dividend shares I'd hold through anything

This trio has scale, resilience, and cash flow to endure market cycles.

Read more »