Investors that are interested in boosting their income portfolio with some dividend shares might want to look at the two listed below.
Here's what you need to know about these highly rated ASX 200 dividend shares:
Commonwealth Bank of Australia (ASX: CBA)
The first ASX 200 dividend share to look at is Australia's largest bank, Commonwealth Bank.
Analysts at Bell Potter are very positive on the bank. They likes CBA due to its strong position as the leader in home lending and retail deposits. The broker also notes that the bank has a very strong balance sheet with significant surplus capital of over $11 billion. This could bode well for potential share buybacks or other capital management initiatives in the future.
Bell Potter currently has a buy rating and $118.00 price target on its shares. It is also forecasting fully franked dividends per share of $4.06 in FY 2022 and $4.27 in FY 2023.
Based on the current CBA share price of $108.50, this will mean yields of 3.7% and 3.9%, respectively.
South32 Ltd (ASX: S32)
Another ASX 200 dividend share to consider is this mining giant. It has a diverse portfolio of world class operations that provide investors with exposure to a range of commodities. This includes alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc.
South32 has also just announced a US$1.55 billion agreement with Sumitomo Corporation to acquire a 45% stake in the Sierra Gorda copper mine in Chile. This deal is expected to be immediately accretive to the company's earnings.
The acquisition went down well with the team at Goldman Sachs, which was already very bullish on South32. In response to the news, the broker retained its conviction buy rating and lifted its price target to $4.40. This is notably higher than the current South23 share price of $3.53.
But it gets even better! Goldman believes the mining giant is well-placed to generate bumper free cash flow for the foreseeable future. In light of this, it is forecasting fully franked dividend yields greater than 11% from FY 2022 through to at least FY 2026.
