Brokers have rated these two ASX 200 dividend shares as buys:
Centuria Industrial REIT (ASX: CIP)
This is a real estate investment trust (REIT). It’s also the largest pure-play Australian industrial REIT. It has around 80 properties that are worth around $4 billion located in “key in-fill” locations close to key infrastructure.
The REIT’s investment objective is to provide income and capital growth to investors with a strong tenant base. According to the company, approximately 62% of the portfolio’s rental income comes from tenant customers directly linked to the production, packaging, and distribution of consumer staples, pharmaceuticals, and telecommunications.
Centuria had a weighted average lease expiry (WALE) of 8.9 years on 31 December 2021, giving long-term income visibility. The portfolio also had a 99.2% portfolio occupancy rate.
The ASX 200 dividend share is benefiting from elevated tenant demand, particularly from the e-commerce sector, creating competition for high-quality industrial assets. This supported a 10% increase in rent over prior passing rents in the FY22 half-year result.
It’s expecting to pay a distribution of 17.3 cents per unit for FY22. At the current Centuria Industrial REIT share price, which has fallen 7.6% in 2022, it implies a distribution yield of 4.5% in this financial year.
The broker Morgan Stanley rates it as a buy with a price target of $4.35. That implies an upside of just over 10%.
JB Hi-Fi Limited (ASX: JBH)
JB Hi-Fi is a retailer of appliances and electronics. It operates three different brands – JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys. There is speculation that it could also be interested in acquiring the electronics retailer Jaycar.
The company generated strong sales in FY21 amid the impacts of COVID-19. And its Australian sales continue to grow.
On 24 March 2022, the ASX 200 dividend share told the market about the FY22 third-quarter sales to date. It reported JB Hi-Fi sales were up 10.5%, The Good Guys sales increased 5.7%, and JB Hi-Fi New Zealand sales were up 2.9%.
The company also said that it had been disciplined with its cost control. Stock availability and the sales mix had helped its gross profit margin. These impacts also helped operating leverage across the group.
JB Hi-Fi grew its dividend every year between 2013 to 2021. In the FY22 half-year result, it paid an interim dividend of $1.63 per share.
Credit Suisse is one of the brokers that rates the company as a buy, with a price target of $60.08. However, the broker thinks growth will slow as inflation costs across the economy bites into consumer demand.
Credit Suisse thinks that, at the current JB Hi-Fi share price, the company has a grossed-up dividend yield of 7.7% in FY22.