2 excellent ASX 200 dividend shares that brokers love

These ASX 200 dividend shares have been rated as buys…

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If you're looking for income, then the ASX 200 could be a great place to start. The benchmark index is filled with a range of quality companies that share their profits with shareholders.

Two ASX 200 dividend shares that do this and have been tipped as buys are listed below. Here's what you need to know about them:

Telstra Corporation Ltd (ASX: TLS)

The first ASX 200 dividend share to consider is Telstra.

It recently released its full year results for FY 2022 and impressed the market thanks to the success of its T22 strategy.

For the 12 months ended 30 June, Telstra posted a 4.7% decline in revenue but an 8.4% increase in underlying EBITDA to $7.3 billion. A key driver of Telstra's earnings growth was its mobile business, which reported EBITDA growth of 21.2% or $700 million over the prior corresponding period.

The good news is that the company is now embarking on its T25 strategy, which is targeting high-teens underlying earnings per share (EPS) compound annual growth rates from FY 2021 to FY 2025.

One broker that is positive on the company is Morgans. In response to its results, the broker put an add rating and a $4.60 price target on the company's shares.

As for dividends, its analysts are forecasting fully franked dividends per share of 17 cents in FY 2023 and FY 2024. Based on the latest Telstra share price of $4.13, this will mean 4.1% yields for investors.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that could be in the buy zone is Westpac.

It is of course one of Australia's big four banks, operating under the Westpac brand and a number of regional banking brands such as St George and Bank of Melbourne.

It could be a quality option for investors thanks to its exposure to rising rates and its bold cost reduction plans. Combined, these should be supportive of earnings and dividend growth in the coming years.

The team at Goldman Sachs certainly expect that to be the case. The broker recently upgraded Australia's oldest bank's shares to a conviction buy rating with a $26.12 price target.

Its analysts believe "WBC provides strong leverage to rising rates" and "will also see the benefit of higher rates play through its NIM quicker than peers." And while the broker doesn't expect Westpac to achieve its full cost base reduction target of $8 billion, it believes $8.9 billion is achievable, which will still be an 18% reduction.

In light of the above, the broker is forecasting fully franked dividends per share of 123 cents in FY 2022 and 135 in FY 2023. Based on the current Westpac share price of $21.36, this represents yields of 5.75% and 6.3% respectively.

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Australia has recommended Westpac Banking Corporation. 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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