Are you looking for some ASX 200 dividend stocks to buy for your income portfolio in November?
If you are, then it could be worth looking at the two buy-rated options named below. Here's what analysts are saying about them right now:
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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 popular brands Powerball, Oz Lotto, and Keno.
The team at Morgans is very positive on the company and sees it as a great option at current levels. It said:
TLC's FY24 result was impressive, driven by a favourable year for Lotteries and strong active customer growth. Despite lapping a record period of growth in Lotteries, we remain positive on the stock as current lottery volumes continue to perform well. The company mentioned that Saturday Lotto will be the next game to receive an update, which should benefit the base game divisions significantly and likely come with a price increase, offsetting some recent softness. […] Based on our estimates, TLC is set to deliver a 4.5% FCF yield and a 4% [now 3.8%] dividend yield in FY25. The stock trades in line with its historical valuation ranges and we view it as a solid option for investors seeking stability.
As for income, Morgans is forecasting a 19 cents per share dividend in both FY 2025 and FY 2026. Based on the latest Lottery Corporation share price of $4.99, this will mean fully franked dividend yields of 3.8%.
The broker has an add rating and $5.40 price target on its shares.
Santos Ltd (ASX: STO)
Another ASX 200 dividend stock that could be a buy is Santos. It is one of the leading energy producers in the Asia-Pacific region, supplying energy needs across Australia and Asia.
Ord Minnett is positive on Santos. This is due partly to its strong free cash flow (FCF) outlook, which is being underpinned by its Pikka and Barossa LNG operations. The broker said:
An estimated FCF yield of 20% once Pikka and Barossa LNG start producing, and rigorous control of how that extra cash is spent, implies to us that Santos will have plenty of room to return excess capital to shareholders either via an increased payout ratio or share buybacks. In our view, the medium-term prospects for Santos offer a compelling investment opportunity.
Its analysts expect this to put the company in a position to pay dividends per share of 41 cents in FY 2024 and then 44 cents in FY 2025. Based on the current Santos share price of $6.96, this will mean dividend yields of 5.9% and 6.3%, respectively.
Ord Minnett also sees plenty of upside for its shares. It currently has a buy rating and $8.40 price target on them.
