Analysts name 2 blue chip ASX 200 dividend shares to buy

These ASX 200 dividend shares could be buys…

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If you’re looking to bolster your income portfolio with some blue chip ASX 200 dividend shares, then you may want to check out the ones listed below.

Here’s why analysts rate these dividend shares as buys:

Telstra Corporation Ltd (ASX: TLS)

The first ASX 200 dividend share that could be in the buy zone is Telstra.

After a decade of struggles, the telco giant is back and has solid and sustainable growth in its sights. This is being underpinned by the successful execution of its transformative T22 strategy and the impending growth-focused T25 strategy.

The team at Morgans has been pleased with its turnaround and saw a lot to like in the telco giant’s half year results in February.

It commented: “TLS’s 1H22 result showed the second consecutive half of underlying growth, with underlying EBITDA up 5%, underlying EPS up substantially and the DPS flat yoy. Mobile was the star performer. Performance is tracking in the right direction and FY22 guidance was re-iterated.”

Morgans has an add rating and $4.56 price target on its shares and expects fully franked dividends per share of 16 cents in FY 2022 and FY 2023. Based on the current Telstra share price of $3.98, this will mean yields of 4%.

Woolworths Group Ltd (ASX: WOW)

Another ASX 200 dividend share that could be in the buy zone is this retail giant.

Woolworths has just released its third-quarter update, which went down well with the team at Goldman Sachs. In response, the broker has retained its buy rating and lifted its price target to $41.70.

Goldman commented: “WOW reported 3Q22 sales +9.7% YoY and slightly ahead of GSe (+2.6%) and Visible Alpha Consensus Data (+0.6%).

“Management noted that WOW gained market share both from value and volume perspective during the quarter. Additionally, outlook commentary on the investor call was cautiously optimistic, with a good 4Q start to strong Easter trading and DC service levels are expected to recover to 95% by end 4Q22.”

As for dividends, Goldman Sachs is forecasting fully franked dividends per share of 96 cents in FY 2022 and $1.18 in FY 2023. Based on the current Woolworths share price of $38.25, this will mean yields of 2.5% and 3.1%, 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 positions in and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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