Analysts name 2 ASX 200 dividend shares to buy

Analysts rate these ASX 200 dividend shares highly…

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If you’re wanting to add some ASX 200 dividend shares to your portfolio, then the two listed below could be ones to consider.

Here’s what you need to know about these dividend shares:

Telstra Corporation Ltd (ASX: TLS)

This telco giant could be an ASX 200 dividend share to consider. This is due to its improving outlook, which is being underpinned by rational competition, the easing NBN headwind, and cost cutting.

In fact, Telstra’s outlook is improving so much that management is forecasting a long-awaited return to growth in FY 2022. It has provided underlying EBITDA growth guidance of 4.5% to 9% and appears confident that it can deliver a further increase in FY 2023.

Analysts at Goldman Sachs are positive on the company. They have a buy rating and $4.30 price target on its shares.

In addition, the broker is forecasting fully franked dividends per share of 16 cents through to FY 2023 and then 18 cents in FY 2024. Based on the current Telstra share price of $3.85, this will mean yields of 4.2% through to FY 2023 and then 4.7% in FY 2024.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share to consider is Westpac. As with Telstra, Australia’s oldest bank has seen a major improvement in its outlook this year.

This is thanks to Australia’s strong economic recovery from the pandemic, a booming housing market, and its bold cost reduction plans.

It is largely for the latter that the team at Citi are bullish on the bank. They recently put a buy rating and $30.00 price target on the bank’s shares.

In addition, the broker has pencilled in dividends per share of $1.16 in FY 2021 and then $1.30 in FY 2022. Based on the current Westpac share price of $26.02, this will mean fully franked yields of 4.5% and 5%, respectively.

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*Returns as of January 12th 2022

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation 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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