Leading broker says these ASX 200 dividend shares are top buys

Bell Potter has good things to say about these income options.

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The team at Bell Potter has been busy picking out its best picks for investors with its Australian equities panel.

These are its favoured Australian equities that it believes offer attractive risk-adjusted returns over the long term.

Among the list are a number of ASX 200 dividend shares. Let's take a look at three that the broker is feeling bullish on this month. They are as follows:

BHP Group Ltd (ASX: BHP)

Bell Potter thinks that BHP would be a good option for investors due to its exposure to copper and further Chinese stimulus. It said:

BHP presents an attractive investment proposition, providing exposure to both copper and the potential upside from further Chinese stimulus measures. BHP is one of the top three global producers of copper and has the largest copper endowment of any company globally. BHP operates the Escondida mine in Chile, where they have a 57.5% ownership stake.

The broker estimates that its shares will provide investors with a 4.3% dividend yield.

Smartgroup Corporation Ltd (ASX: SIQ)

Another ASX 200 dividend share that gets the thumbs up from Bell Potter is fleet management and salary packaging company Smartgroup. The broker feels its shares are good value given its positive outlook and defensive earnings. It said:

Smartgroup is an industry-leading provider of employee benefits, end-to-end fleet management and software solutions with over 400,000 salary packages and 64,000 novated leases under management. SIQ looks well priced given a fwd P/E of ~14.5x, a defensive client base, earnings tailwinds from the Electric Car Discount Bill (exempts low or zero emission vehicles from Fringe Benefits Tax), an ROE of ~30% and a strong balance sheet.

Bell Potter is expecting a dividend yield in the region of 5.4% from its shares.

Transurban Group (ASX: TCL)

Finally, Bell Potter has named toll road operator Transurban on its Australian equities panel this month. It believes the company is well-placed for growth over the coming decades. It said:

We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group's current pipeline of growth projects is $3.3 billion (TCL's share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth

The broker estimates that its shares offer a 5% dividend yield.

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 Transurban Group. The Motley Fool Australia has positions in and has recommended Smartgroup. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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