Analysts rate these ASX 200 dividend shares as buys

Analysts are bullish on these dividend shares….

| More on:
It's raining cash for this man, as he throws money into the air with a big smile on his face.

Image source: Getty Images

If you’re looking to beat low interest rates with some dividend shares, then you may want to look at the ones listed below.

Here’s why these ASX 200 dividend shares are rated as buys:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is BHP.  This mining giant could be a top option for income investors thanks to the diversity of its world class operations and the strong free cash flow they generate.

Morgans is a fan of the company and has an add rating and $45.70 price target on its shares.

It recently commented: “We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.”

As for dividends, the broker has pencilled in fully franked dividends of $3.42 per share in FY 2022 and $2.45 in FY 2023. Based on the current BHP share price of $41.68, this will mean yields of 8.2% and 5.9%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX 200 dividend share for income investors to consider is NAB. The team at Bell Potter is positive on the banking giant and has a buy rating and $32.00 price target on its shares.

The broker said: “NAB is now the second largest major bank by market capitalisation. The payout ratio is now close to its maximum, being 65-75% of cash earnings. ROE was 10.7% in FY21 and still climbing, while CET1 ratio was 13% and ahead of the 10.75-11.25% target range. The bank still intends to return surplus capital, being 40% complete. The acquisition of 86 400 plus the proposed acquisition of Citigroup’s Australian consumer business will see the bank achieve scale in digital and consumer banking offerings.”

The broker is forecasting dividends per share of 132.5 cents in FY 2022 and then 134.5 cents in FY 2023. Based on the current NAB share price of $29.32, this equates to fully franked yields of 4.5% and 4.6%, respectively.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

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 has no position in any of the stocks mentioned. 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

Man holding different Australian dollar notes.
Dividend Investing

2 high quality ASX 200 dividend shares analysts have named as buys

Here are two dividend shares rated as buys...

Read more »

A woman holds a lightbulb in one hand and a wad of cash in the other
Dividend Investing

Top brokers name 3 ASX dividend shares to buy today

Top brokers have named 3 dividend shares they think are buys...

Read more »

A kid stretches up to reach the top of the ruler drawn on the wall behind.
Bank Shares

Has the ANZ dividend been growing?

The ASX bank's shares are well known for their big dividends but have tbey been growing recently? We take a…

Read more »

A man in suit and tie is smug about his suitcase bursting with cash. representing the large amount of cash that Bigtincan reported in its quarterly update which has made the Bigtincan share price rise today
Dividend Investing

2 ASX dividend shares rated as buys by experts amid inflation volatility

BHP is one of the ASX dividend shares liked by brokers.

Read more »

Miner holding cash which represents dividends.
Dividend Investing

I like APA as an ASX dividend share idea. Here’s why

APA has performed well as an ASX dividend share in my opinion.

Read more »

Three Argosy miners stand together at a mine site studying documents with equipment in the background
Resources Shares

What’s the outlook for Fortescue shares with Twiggy at the helm?

Andrew Forest stepped down as CEO of the ASX 200 iron ore giant in 2011.

Read more »

Dividend Investing

Analysts name 2 top ASX 200 dividend shares to buy now

Here are a couple of dividend shares paying big dividends...

Read more »

A boy in a green shirt holds up his hands in front of a screen full of question marks.
Resources Shares

Do Vulcan Energy shares pay dividends?

Vulcan Energy shares may be popular. But do they pay dividends like other ASX miners?

Read more »