Analysts name 2 ASX 200 dividend shares to buy now

These dividend shares could be quality options for income investors…

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Are you looking for some dividend options for your portfolio? If you are, check out the two ASX shares listed below.

Here’s why these ASX dividend shares have been tipped to as buys:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share for investors to consider is this retail giant. As well as being one of the big two supermarket operators with over 800 stores, Coles operates over 900 liquor retail stores, and over 700 Coles express stores.

But management isn’t settling for this. It continues to expand its network and invest in its online business. The latter includes the construction of new smart distribution centres with automation giant Ocado. All in all, analysts expect this to underpin solid earnings and dividend growth over the 2020s.

The team at Citi expect this to be the case. The broker is positive on Coles and currently has a buy rating and $19.30 price target on its shares. As for dividends, Citi has pencilled in fully franked dividends per share of 65 cents in FY 2022 and 72 cents in FY 2023.

Based on the current Coles share price of $17.74, this will mean yields of 3.7% and 4.1%, respectively.

Super Retail Group Ltd (ASX: SUL)

Another ASX 200 dividend share that could be in the buy zone is Super Retail. It is the company behind the BCF, Macpac, Rebel, and Supercheap Auto businesses.

Super Retail’s shares have fallen heavily this year due to a disappointing half year result caused by COVID headwinds. However, the team at Morgans believe this recent weakness is a buying opportunity for investors and recently upgraded its shares to an add rating with a $13.80 price target.

The broker highlights that Super Retail’s shares were trading at just 12x estimated FY 2023 earnings at that point. They have since fallen even further.

Morgans appears confident that Super Retail will bounce back as COVID headwinds ease. This is expected to support fully franked dividends of 59 cents per share in FY 2022 and 61 cents per share in FY 2023. Based on the current Super Retail share price of $10.24, this will mean yields of 5.75% and 6%, 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. owns and has recommended Super Retail Group Limited. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET and Super Retail Group Limited. 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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