2 buy-rated ASX 200 dividend shares with great yields

These dividend shares are in favour with analysts…

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Are you looking for dividend shares to buy? If you are, then you might want to look at the shares listed below that have been named as buys by the team at Morgans.

Here’s why these ASX 200 dividend shares could be worth considering right now:

Telstra Corporation Ltd (ASX: TLS)

The first ASX 200 dividend share to look at is Australia’s largest telecommunications company, Telstra. It could be a quality option due to its increasingly positive outlook after years of earnings declines and dividend cuts brought about by the rollout of the NBN.

The key to its positive outlook will be the T25 strategy, which has management targeting solid and sustainable growth in the coming years. Combined with the arrival of 5G and rational competition, some analysts believe the company will soon be in a positive to increase its dividend for the first time in almost a decade.

The team at Morgans is fans of Telstra. It has an add rating and $4.55 price target on its shares. The broker also continues to forecast dividends of 16 cents per share in FY 2022 and FY 2023. Based on the current Telstra share price of $4.09, this will mean yields of 3.9%.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that Morgans is positive on is this banking giant. It believes the recent weakness in the Westpac share price is unwarranted and has created a buying opportunity for investors.

Particularly given its belief that Westpac can cut its cost base in line with its plans. This alone will be supportive of earnings growth in the coming years if all goes to plan.

All in all, Morgans notes that its shares are the cheapest among the big four and offer the biggest forecast dividend yields. Morgans has pencilled in 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 $20.98, this will mean yields of 5.9% and 7.7%, respectively.

The broker has an add rating and $29.50 price target on Westpac’s shares.

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*Returns as of January 12th 2022

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 owns and has recommended Telstra Corporation Limited. 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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