Morgans names 2 ASX 200 dividend shares to buy

Here are two dividend shares analysts rate highly…

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If you’re looking for dividend shares to buy, then you may want to check out the ones listed below that are rated as buys by the team at Morgans.

Here’s what its analysts are saying about these ASX 200 dividend shares:

Transurban Group (ASX: TCL)

The first ASX 200 dividend share that Morgans is bullish on is Transurban. It is a toll road operator with a portfolio of key roads in Australia and North America. Morgans likes Transurban due to its exposure to a number of growth drivers.

It explained: “We view TCL as a high quality pure-play toll road infrastructure portfolio benefitting from employment and population growth, urbanisation, and the value of time, with particular exposure to the east coast capital cities in Australia.”s

Its analysts are forecasting dividends per share of 35 cents in FY 2022 and then 55.3 cents in FY 2023. Based on the current Transurban share price of $13.87, this implies yields of 2.5% and 4%, respectively. Morgans has an add rating and $14.57 price target on its shares.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that Morgans rates as a buy is Westpac. Its analysts believe the recent weakness in the Westpac share price has created an opportunity for income investors.

Morgans commented:: “WBC shares have been sold off heavily following the FY21 result announcement, such that out of the major banks, WBC is now trading on the lowest FY22F P/NTA multiple, the lowest FY22F P/E multiple and the highest FY22F dividend yield. Such multiples or yields could only be justified if WBC is a value trap, which we think it is not. We believe the challenges facing WBC are not severe enough for WBC to be thought of as a value trap.”

The broker is forecasting fully franked dividends 123 cents per share in FY 2022 and then 162 cents per share in FY 2023. Based on the current Westpac share price of $21.51, this will mean yields of 5.8% and 7.6%, respectively. Morgans has an add rating and lofty $29.50 price target on the banking giant’s shares.

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Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 recommended Westpac Banking Corporation. 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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