2 ASX 200 dividend shares analysts rate as buys

These ASX 200 dividend shares are rated as buys…

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There are a lot of dividend shares for investors to choose from on the ASX 200 index. Two that have recently been rated as buys are listed below.

Here’s why analysts rate them highly right now:

Harvey Norman Holdings Limited (ASX: HVN)

Harvey Norman could be an ASX 200 dividend share to buy according to analysts at Goldman Sachs.

They like the retail giant due to its strong market position and favourable customer demographics. In respect to the latter, the broke notes that Harvey Norman “has a greater preference within the boomer generation and a higher exposure to regional Australia.” Goldman expects this to protect the company from online disruption.

Goldman currently has a buy rating and $4.50 price target on the retail giant’s shares.

As for dividends, the broker is forecasting fully franked dividends of 45.9 cents per share in FY 2022 and 36.3 cents per share in FY 2023. Based on the current Harvey Norman share price of $4.21, this will mean yields of 10.9% and 8.6%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share that could be in the buy zone is Wesfarmers. It is the conglomerate behind a range of businesses including Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Priceline.

Analysts at Morgans are very positive on Wesfarmers and believe it has “one of the highest quality retail portfolios in Australia” with “a highly regarded management team” leading the business.

Morgans has an add rating and $58.40 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends per share of $1.65 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $47.00, this will mean yields of 3.5% and 3.85%, 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 positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. and Wesfarmers 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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