2 excellent ASX 200 dividend shares to buy in December

Here are two dividend shares to buy in December…

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With interest rates still at very low levels, it continues to be a difficult period for income investors. The good news is there are plenty of ASX dividend shares that can help you overcome low rates in December.

Two such ASX 200 dividend shares to look at are listed below. Here’s what you need to know about them:

Healius Ltd (ASX: HLS)

The first ASX dividend share to look at this month is Healius. It is a healthcare company with a focus on pathology, diagnostic imaging, day hospitals, and IVF.

It is the company’s pathology, or COVID testing business to be precise, that is catching the eye right now. Extremely strong demand for testing services has been supporting very strong sales and earnings and looks set to continue doing so for the foreseeable future following the emergence of the Omicron strain.

The team at Macquarie is very positive on Healius and is forecasting fully franked dividends per share of 23.7 cents in FY 2022 and 14.5 cents in FY 2023. Based on the current Healius share price of $4.83, this will mean yields of 4.9% and 3%, respectively.

Macquarie has an outperform rating and $5.65 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share to look at in December is Telstra. This telco giant could be a quality option due to its increasingly positive outlook.

This has been underpinned by the success of the T22 strategy and the recent unveiling of the new T25 strategy that will replace it next year. The former was based on transforming the company, whereas the latter will be about driving growth.

Management expects it to deliver solid earnings growth over the medium term, which has many analysts now pencilling in dividend increases in the near future. One of those is Goldman Sachs, which is forecasting an increase to 18 cents per share in FY 2024 and then 19 cents per share in FY 2025.

Until then, Goldman expects Telstra to continue paying a fully franked 16 cents per share dividend. Based on the current Telstra share price of $4.07, this represents a 3.9% dividend yield.

Goldman has a buy rating and $4.40 price target on its shares.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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