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ASX 200 dividend shares! Should you buy this 10% yield for your super?

A number of ASX 200 dividend shares have been hammered in 2020. The S&P/ASX 200 Index (ASX: XJO) has slumped 19.48% as coronavirus concerns have largely shut down the global economy.

The economic uncertainty of the pandemic has also had an impact on ASX 200 dividend shares. With many companies unsure of when their cash flow will start up again, cash really is king right now. That means many high-yielding ASX dividend shares may be holding onto their money until the storm passes.

However, there’s one company that could be worth a look for your superannuation: Westpac Banking Corp (ASX: WBC).

Why Westpac is a good ASX 200 dividend share to buy

Let’s start with some numbers to get a better idea of Westpac shares right now. Westpac boasts a market capitalisation of $57.64 billion despite its share price falling 34.02% in 2020.

Westpac shares have a dividend yield of 10.90% per annum – one of the highest amongst ASX shares right now.

Now, of course, dividend yields can be misleading. Earnings are lagging, meaning that they are announced at each half-year period. In contrast, the price portion of the dividend yield calculation is constantly changing throughout those 6 months.

That’s especially true right now, with many international banks being told not to pay dividends right now. The banks are a critical part of the global economy, meaning prudent financial management is key to see the economy through coronavirus.

Given the conservatism from APRA over the years, that could hit the Aussie banks too. But could Westpac still be an ASX 200 dividend share to buy for your super?

The bank’s share price has been hammered in this bear market. However, banks could arguably do quite well throughout this period. While many corporates are struggling, the banks are in a stronger position than many others.

The other thing to remember is that investments are long-term. Given this is largely a regulatory move, rather than a capacity to pay issue, I think Westpac could still be an ASX 200 dividend share to buy for your super.

Foolish takeaway

It’s easy to get carried away with short-term movements right now. But staying focused on investing for retirement and picking high-quality companies could yield big results in this bear market.

ASX 200 dividend shares might take a temporary hit, but there are certainly still some good buys on the market.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.