If you're an income investor in search of dividend shares to buy, then you may want to look at the two listed below.
Both are being recommended as buys by the team at Morgans. Here's what they are saying about these ASX 200 dividend shares:
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QBE Insurance Group Ltd (ASX: QBE)
Morgans believes this insurance giant's shares are in the buy zone at the current level. This is due to them trading on very attractive multiples at a time when QBE's outlook is improving.
It said: "We see QBE as likely having positive underlying momentum into next year. QBE has been putting through top-line rate increases of around 9%, which should assist margin expansion into FY22. With QBE's balance sheet recently reset, pricing tailwinds evident and the stock relatively inexpensive trading on ~12.8x FY22F PE [now ~14x]."
Morgans expects QBE to pay a 64.8 cents per share dividend in FY 2022. Based on the current QBE share price of $12.19, this will mean a yield of 5.3%. The broker has an add rating and $13.70 price target on its shares.
Westpac Banking Corp (ASX: WBC)
Another ASX 200 dividend share that Morgans likes is Westpac. It believes the banking giant's shares are cheap at the current level and expects them to provide a generous yield for 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."
The broker expects fully franked dividends per share of $1.23 in FY 2022 and then $1.62 in FY 2023. Based on the current Westpac share price of $21.75, this will mean yields of 5.7% and 7.45%, respectively. Morgans has an add rating and $29.50 price target on the bank's shares.
