Why brokers rate these ASX 200 dividend shares as buys

Here are two dividend shares to buy…

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If you're looking for dividend shares to buy then you may want to look at the ones below that brokers are recommending.

Here's what brokers are saying about these ASX 200 dividend shares:

National Australia Bank Ltd (ASX: NAB)

The first ASX 200 dividend share to look at is banking giant NAB. It could be a top option in the sector thanks to its strong position in business banking, which is performing far better than retail banking at present. It was thanks largely to this side of the business that NAB delivered a 9.1% increase in cash earnings during the first quarter.

In addition, the bank is aiming to boost its consumer banking offering through acquisitions. This includes the recently completed acquisition of digital bank 86 400 and the proposed acquisition of Citigroup's Australian consumer business. The team at Bell Potter expect these to allow the bank to "achieve scale in digital and consumer banking offerings."

Its analysts remain very positive on NAB and currently have a buy rating and $32.50 price target on its shares. The broker has also pencilled in fully franked 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 $29.11, this equates to yields of 4.55% and 4.6%, respectively.

Transurban Group (ASX: TCL)

Another ASX 200 dividend share to consider is toll road giant Transurban. It could be a top long term option for investors thanks to its portfolio of key roads in the Australia and North America markets and its development projects. The latter look likely to underpin solid growth over the next decade.

Analysts at Morgans are positive on Transurban. This is due largely to its exposure to a number of factors which are expected to boost traffic on its roads. These include employment and population growth, urbanisation, and the value of time.

Morgans has an add rating and $14.29 price target on its shares. As for dividends, it is 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 $12.58, this implies yields of 2.8% and 4.4%, respectively.

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.

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