Broker names 2 ASX 200 mining shares with big dividends to buy now

Here are two ASX 200 mining shares to buy…

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Are you looking for some ASX 200 mining shares to buy?

If you are, then look no further. The two listed below have been named as buys by analysts at Morgans. Here’s why it is bullish on them:

BHP Group Ltd (ASX: BHP)

Analysts at Morgans are positive on the Big Australian and see it as one of the best mining shares to buy. This is due to BHP being a lower risk option in the sector and its strong balance sheet and dividend profile.

It explained:

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct Covid-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.

Morgans currently has an add rating and $48.30 price target on its shares. In addition, the broker expects dividend yields of 9% in FY 2022 and 7% in FY 2023.

South32 Ltd (ASX: S32)

Another mining share that Morgans is bullish on is South32. Its analysts have been pleased with the transformation of the miner’s portfolio in recent years. This has improved the quality of its earnings and also its ESG credentials.

Morgans commented:

S32 has transformed its portfolio divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). 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.

Its analysts have an add rating and $6.10 price target on South32’s shares. And, like BHP, the broker is expecting some big dividends in the near term. Morgans is forecasting dividend yields of 6% in FY 2022 and 8% in FY 2023.

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 Scott Phillips.

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