One thing the S&P/ASX 200 Index (ASX: XJO) is not short of is dividend shares. Which certainly is a big positive given how low interest rates are right now.
With that in mind, I have picked out two ASX 200 dividend shares that analysts rate as buys. They are as follows:
Coles Group Ltd (ASX: COL)
The first ASX 200 dividend share to look at is Coles. This supermarket operator has been tipped to grow at a solid rate over the next decade.
This is expected to be underpinned by its strong market position and its Refreshed Strategy. The latter is cutting costs, making its operations more efficient, improving its online business, and focusing on automation through its soon-to-be-built distribution centres with Ocado.
Goldman Sachs is very positive on Coles. It currently has a buy rating and $19.40 price target on its shares. The broker is also forecasting fully franked dividends of 62 cents per share in FY 2021 and then 67 cents per share in FY 2022. Based on the current Coles share price of $16.82, this represents yields of 3.7% and 4%, respectively, over the next two years.
Westpac Banking Corp (ASX: WBC)
Another ASX 200 dividend share that has been rated as a buy is Westpac. Morgan Stanley is bullish on the banking giant and has a buy rating and $29.20 price target on the company's shares.
The broker believes Westpac can continue to outperform the ASX 200. This is thanks to a continuing earnings upgrade cycle and a better outlook for revenue growth. In addition to this, it likes Westpac due to its current valuation and the prospect of significant capital management.
Morgan Stanley is forecasting fully franked dividends per share of $1.18 and $1.25 over the next two years. Based on the latest Westpac share price of $25.53, this will mean yields of 4.6% and 4.9%, respectively.
