These ASX 200 dividend shares are rated as buys

Here are two buy-rated dividend shares for ASX investors…

| More on:
blockletters spelling dividends bank yield

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Are you looking for a source of income in this low interest environment? If you are, then you may want to check out the ASX 200 dividend shares listed below.

Both dividend shares offer investors generous yields that smash the interest rates on offer with term deposits. Here's what you need to know about them:

DEXUS Property Group (ASX: DXS)

The first ASX dividend share to look at is Dexus. It is an Australian real estate company focused on office, industrial and retail properties.

It recently revealed that 124 of its 189 assets have been externally valued, resulting in a ~$421 million or 2.4% increase in valuation. Management believe this demonstrates the strong demand for high quality industrial property.

But management isn't resting on its laurels. The company has a $15.4 billion development pipeline, which provides it with an opportunity to grow both portfolios and enhance future returns.

Macquarie is positive on DEXUS and has an outperform rating and $11.93 price target on its shares. The broker is also forecasting dividends per share of 53.7 cents in FY 2022 and 57.5 cents in FY 2023. Based on the current Dexus share price of $11.08 this will mean yields of 4.8% and 5.1%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to look at is Australia's largest telco, Telstra. After years of disappointing investors with dividend cuts, the telco giant has turned a corner and now has analysts anticipating dividend increases in the near future.

This is being underpinned by the success of its transformational T22 strategy and its new T25 strategy which is aiming to deliver sustainable earnings growth over the coming years.

Goldman Sachs appears confident Telstra will deliver on its goals. It is forecasting 16 cents per share dividends for FY 2022 and FY 2023, before an increase to 18 cents per share in FY 2024 and then 19 cents per share dividend in FY 2025.

Based on the current Telstra share price of $4.13, this will mean fully franked yields 3.9% and then 4.35% and 4.6%, respectively. Goldman has a buy rating and $4.40 price target on the company's shares.

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 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.

More on Dividend Investing

Happy woman holding $50 Australian notes
Dividend Investing

10 ASX shares that have raised dividends for a decade

Here's the list of 10 ASX dividend shares with an unbeatable track record.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

2 ASX dividend shares offering over 5% yield

Grab a cuppa, get comfy, and let’s dive into the exciting world of dividends Down Under.

Read more »

A woman standing in a blue shirt smiles as she uses her mobile phone to text message someone
Dividend Investing

Buy Telstra and these ASX dividend stocks now

Analysts think the telco giant and these stocks would be good options for income investors.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

This ASX dividend share is predicted to pay a 12% yield in 2026!

This stock could be a significant dividend payer in the years ahead.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

Analysts name 3 high yield ASX dividend stocks to buy

These stocks are tipped to provide larger than average yields in the near term.

Read more »

Five happy young friends on the coast, dabbing and raising their arms in the air.
Dividend Investing

Tax-busters: 5 fully-franked ASX dividend shares I'd buy for FY25

Fully-franked dividends can save you paying some tax this year...

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Dividend Investing

Brokers name 3 ASX dividend shares to buy

Income investors might want to check out these companies.

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Dividend Investing

2 ASX shares with shareholder-friendly policies

Meet these two ASX dividend shares with excellent track records.

Read more »