2 fantastic ASX 200 dividend shares rated as buys

BHP Group Ltd (ASX:BHP) and this ASX 200 dividend share have been named as buys. Here’s what you need to know…

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Are you wanting to boost your income portfolio with some ASX 200 dividend shares in May?

Then you might want to take a look at the blue chip dividend shares listed below. Here’s what you need to know about them:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share to look at is this mining giant. It could be a great option due to its world class operations and favourable commodity prices.

This is particularly the case for its iron ore operations, which should be generating significant free cash flow thanks to an iron ore price nearing US$200 per tonne.

One broker that is positive on the mining giant is Goldman Sachs. It currently has a buy rating and $53.40 price target on its shares.

Goldman is expecting a strong second half, leading to a full year dividend of $2.31 per share in FY 2021. Based on the current BHP share price of $45.65, this equates to a fully franked 4.8% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

A second ASX 200 dividend share to look at is Telstra. It could be a great option due to its increasingly positive outlook.

This is being driven largely by its Telstra’s T22 strategy, which is creating a much leaner business, and its leadership position in 5G. Another positive is that Telstra is aiming to unlock value by monetising assets and splitting into three separate entities.

Ord Minnett is a fan of the plan and believes the Telstra share price is in the buy zone. It currently has a buy rating and $4.05 price target on its shares.

It is also expecting Telstra to continue to pay a 16 cents per share fully franked dividend for the foreseeable future. Based on the latest Telstra share price, this represents an attractive 4.7% dividend yield.

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*Returns as of August 16th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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