2 ASX 200 dividend shares experts are tipping as buys

These dividend shares have been named as buys…

| More on:
Man holding different Australian dollar notes.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you’re looking for dividend shares to help you beat inflation, then the two listed below could be worth considering.

Here’s why these ASX 200 dividend shares are rated as buys right now:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share to look at is BHP. The Big Australian’s shares have been on fire this year and are up over 14% since the start of 2022 despite a recent pullback. This has been driven by the rising iron ore price, among with other commodities, which has positioned BHP to deliver bumper free cash flows again in the coming years.

The team at Citi believes the BHP share price still has a long way to run. It recently upgraded its shares to a buy rating with a $56.00 price target. Citi said: “BHP cash flow generation is up strongly on our revised IO price deck and we think market outperformance can continue given the hefty cash forecast cash build and upgrade to Buy.”

As for dividends, the broker expects fully franked dividends of $4.80 per share in FY 2022 and $4.55 per share in FY 2023. Based on the current BHP share price of $48.49, this implies potential yields of 9.9% and 9.4%, respectively.

Centuria Industrial Reit (ASX: CIP)

Another ASX 200 dividend share to look at is Centuria Industrial. It is the largest domestic pure play industrial REIT and the owner of a portfolio of high-quality industrial assets situated in key metropolitan locations throughout Australia.

Demand for these properties has been very strong in FY 2022, leading to strong rental growth during the first half. Management explained: “Strong leasing activity increased portfolio occupancy to a high 99.2%. Leasing across CIP’s portfolio delivered 10% rental growth driven by elevated occupier demand, particularly from the e-commerce sector, creating competition for high-quality industrial assets.”

The team at Macquarie expect this trend to continue. As a result, the broker has put an outperform rating and $4.27 price target on its shares.

Macquarie is also forecasting a 17.3 cents per share distribution in FY 2022 and an 17.8 cents per share distribution in FY 2023. Based on the current Centuria Industrial share price of $3.95, this will mean yields of 4.4% and 4.5%, 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.

More on Dividend Investing

Gold bars and Australian dollar notes.
Resources Shares

Do Evolution Mining shares pay a dividend?

The ASX 200 mining shares are known as good dividend payers -- is Evolution among them?

Read more »

a pile of colourful trainer shoes and sandshoes fashioned to look like a large shoe.
Retail Shares

What is the current dividend yield for Accent shares?

What kinds of dividends is Accent Group paying these days?

Read more »

Woman in business suit holds both hands out with a question mark above each hand.
Dividend Investing

How does the Woolworths dividend compare to Wesfarmers over the last 5 years?

How does the Woolworths dividend fare against its biggest rival?

Read more »

An analyst wearing a dark blue shirt and glasses sits at his computer with his chin resting on his hands as he looks at the CBA share price movement today
Dividend Investing

Brokers rate these ASX dividend shares as buys

These dividend shares could be buys according to brokers...

Read more »

A woman sits at her computer with hand to mouth and a contemplative smile on her face although she is considering or thinking about information she is seeing on the screen.
Dividend Investing

4 ASX dividend shares to buy that aren’t banks or miners: expert

Finance and resources aren't the only income-producing stocks. Here are some going for cheap after the recent sell-off.

Read more »

A woman holds a lightbulb in one hand and a wad of cash in the other
Dividend Investing

Here are 2 top ASX 200 dividend shares to buy right now according to experts

Here are a couple of top dividend shares that could be buys...

Read more »

A group of people in suits and hard hats celebrate the rising share price with champagne.
Resources Shares

Which ASX 200 mining share offers the best dividend yield for FY22?

Top brokers are forecasting dividend yields of 14% to 17% from the big three ASX 200 miners in FY22.

Read more »

Three colleagues stare at a computer screen with serious looks on their faces.
Dividend Investing

Here are 3 ASX financial shares going ex-dividend this week

Let's check out some funds going ex-div this week.

Read more »