2 ASX 200 dividend shares to buy according to a top broker

A top broker is positive on these dividend shares…

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If you’re wanting to add some ASX 200 dividend shares to your portfolio, then it could be worth considering the two listed below.

Here’s why a leading broker thinks they could be top options for income investors:

Macquarie Group Ltd (ASX: MQG)

The first ASX 200 dividend share to look at is investment bank Macquarie.

It recently released its full-year results for FY 2022 and revealed a net profit after tax of $4.7 billion. This was up a staggering 56% over the prior corresponding period. And while it will be hard to top this in FY 2023, the team at Morgans remain positive and see plenty of value in its shares.

Last week the broker put an add rating and $215.00 price target on the bank’s shares.

Morgans commented: “We anticipate some near-term earnings volatility over FY23 but we like MQG’s favourable longer-term growth profile and consistent history of delivering strong returns (~15% average ROE over time).”

Its analysts expect a $7.07 per share dividend in FY 2023 and then $7.47 per share dividend in FY 2024. Based on the current Macquarie share price of $183.11, this will mean yields of 3.9% and 4.1%, respectively.

South32 Ltd (ASX: S32)

Another ASX 200 dividend share to look at is South32. It is diversified mining and metals company producing a range of commodities including alumina, aluminium, bauxite, coal, copper, manganese, nickel, and silver across operations in Australia, Southern Africa and South America.

Morgans is a big fan of the company. It currently has an add rating and $6.10 price target on the miner’s shares.

The broker commented: “We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.”

In respect to the latter, the broker is forecasting fully franked dividends per share of 25.8 cents in FY 2022 and 35.3 cents in FY 2023. Based on the current South32 share price of $4.41, this represents yields of 5.85% and 8%, respectively, over the next couple of years.

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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.

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