2 ASX 200 dividend shares brokers rate as buys

Here are two buy-rated dividend shares…

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If you’re looking for ASX dividend shares to buy, then the ones listed below could be worth considering.

Here’s what you need to know about these dividend shares:

Rio Tinto Limited (ASX: RIO)

The first dividend share to consider is Rio Tinto. This mining giant is being tipped to reward shareholders with huge dividends in the coming years thanks to strong commodity prices and its return to production growth.

Goldman Sachs, for example, is very positive on Rio Tinto and has a buy rating and $131.50 price target on its shares.

The broker likes the miner due to its attractive valuation and strong free cash flow. Goldman also notes that the miner has compelling low emission aluminium exposure through its ELYSIS inert anode technology, which it believes could be worth billions.

As for dividends, Goldman expects fully franked dividends of around US$9.00 per share in FY 2022 and FY 2023. Based on the current Rio Tinto share price of $120.34 and current exchange rates, this will mean yields of approximately 10%.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share to consider is one of Australia’s leading conglomerates, Wesfarmers.

It is the company behind brands such as Kmart, Officeworks, Priceline, Catch, Bunnings, and a wide range of industrial businesses.

Combined, the team at Morgans believe the company is well-placed for growth over the long term. In light of this, it recently put an add rating and $58.50 price target on its shares.

In respect to dividends, Morgans is forecasting fully franked dividends per share of $1.62 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $49.59, this will mean yields of 3.3% and 3.6%, respectively.

Morgans commented: “WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart, Target and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While Covid-related staff shortages are proving to be a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the recent pullback in the share price as a good entry point for longer term investors.”

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 owns and has recommended Wesfarmers 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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