2 ASX 200 dividend shares analysts rate as buys

Here are two ASX 200 dividend shares rated as buys….

| More on:

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 ASX 200 dividend shares to buy, then you may want to check out the two listed below.

Both have recently been named as buys by analysts. Here's why they rate them highly this month:

Broker looking at the share price on her laptop with green and red points in the background.

Image source: Getty Images

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

The first ASX 200 dividend share that analysts are positive on is ANZ Bank.

The big four bank was recently tipped as a buy by analysts at Citi. The broker currently has a buy rating and $29.00 price target on the bank's shares

Citi appears to believe the acquisition of the banking operations of Suncorp Group Ltd (ASX: SUN) could be a boost if everything goes to plan.

If integrated successfully, we believe the deal looks to represent fair value, with the acquisition PE of 13.8x offset by substantial cost synergies (~35% of SUN Bank cost base), funding cost benefits (due to ANZ's AA rating) and lower capital intensity (a move to AIRB accreditation) over time.

As for dividends, the broker is forecasting fully franked dividends of $1.42 per share in FY 2022 and $1.65 per share in FY 2023. Based on the current ANZ share price of $24.02, this will mean yields of 5.9% and 6.9%, respectively.

BHP Group Ltd (ASX: BHP)

Another ASX 200 dividend share to look at is mining giant BHP.

The Big Australian could be a top option for income investors thanks to the high levels of free cash flow it is generating from its world class and diverse operations.

Morgans certainly thinks this is the case. It has an add rating and $48.40 price target on its shares.

The broker commented:

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.

In respect to dividends, the broker is expecting a $3.97 per share dividend in FY 2022 and then a $3.88 per share dividend in FY 2023. Based on the latest BHP share price of $38.83, this equates to massive fully franked yields of 10.2% and 10%, 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 Scott Phillips.

More on Dividend Investing

Person with a handful of Australian dollar notes, symbolising dividends.
Dividend Investing

Why now could be the perfect time to buy ASX dividend stocks

Regardless of what point of the economic cycle we're in, ASX dividend stocks are a long-term play.

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

This is the ASX 300 share offering a 9% dividend yield!

There’s a lot to like about this business for dividends and growth.

Read more »

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces as they review the payouts from ASX dividend stocks. All are wearing glasses.
Dividend Investing

Is it time to load up on these high-yielding ASX dividend shares?

Tumbling share prices have pushed the yields up to 9%.

Read more »

Person with a handful of Australian dollar notes, symbolising dividends.
Dividend Investing

3 must-own ASX dividend shares which belong in every portfolio

If you want long-term passive income you need to consider these three ASX dividend shares.

Read more »

Woman calculating dividends on calculator and working on a laptop.
Dividend Investing

2 ASX dividend shares to hold for the next 7 years

Income investing doesn’t have to be complicated. These two ASX shares stand out to me.

Read more »

Excited couple celebrating success while looking at smartphone.
Dividend Investing

3 ASX income stocks trading at attractive prices

Analysts tip an upside ahead for each of these ASX shares.

Read more »

A woman sits on a step laughing at something on her mobile phone as it is being charged by a lithium-powered battery.
Dividend Investing

5 reasons why I'd buy Telstra shares for passive income

Looking for reliable passive income? Here’s why Telstra stands out to me right now.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Dividend Investing

Should I put 100% of my money into this ASX dividend stock for passive income?

Should passive income investors go all in on Dicker Data shares?

Read more »