2 ASX 200 dividend shares named as buys

These dividend shares could be top options right now…

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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. It could be a good option for income investors following a sizeable pullback by its shares over the last couple of months.

This has left the CBA share price trading at an attractive level according to the team at Bell Potter. The broker currently has a buy rating and $111.00 price target on its shares.

Bell Potter likes CBA due to its strong position as the leader in home lending and retail deposits, its strong balance sheet, and significant surplus capital. It feels the latter could bode well for share buybacks in the future.

Bell Potter also expects attractive yields in the near term. The broker is forecasting fully franked dividends per share of $3.94 in FY 2022 and $4.15 in FY 2023. Based on the current CBA share price of $100.63, this will mean yields of 3.9% and 4.1%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 dividend share that could be a top option for income investors is Telstra.

This is due to its much-improved outlook, which is being underpinned by both its T22 and T25 strategies. The T22 strategy was about transforming the telco giant whereas the T25 is focused on driving growth.

Telstra’s CEO, Andrew Penn, revealed that the company is targeting a “high-teens” underlying earnings per share compound annual growth rate from FY 2021 to FY 2025.

This has many analysts believing that a dividend increase could be coming in the near future should it deliver on its targets. For now, though, the team at Morgans expects fully franked dividends per share of 16 cents in FY 2022 and FY 2023.

Based on the current Telstra share price of $4.15, this will mean yields of 3.9% for the next couple of years. Morgans also sees decent upside for Telstra’s shares and has an add rating and $4.55 price target on them.

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.

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