Why analysts say these ASX 200 dividend shares are buys

These dividend shares are tipped to offer investors generous yields…

| More on:
A couple working on a laptop laugh as they discuss their ASX share portfolio.

Image source: Getty Images

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 additions to your income portfolio, then the two ASX 200 dividend shares listed below could be worth considering.

Both shares have been rated as buys by analysts and tipped to provide attractive yields in the coming years. Here's what you need to know:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX 200 dividend share for income investors to look at is the Charter Hall Social Infrastructure REIT.

This real estate investment trust is focused on investing in social infrastructure properties such as bus depots, government facilities, police and justice services, and childcare centres.

Analysts at Goldman Sachs are very positive on the company due to its solid outlook, sky high occupancy rate, and long leases. They have put a conviction buy rating and $4.20 price target on its shares.

The broker is expecting this to underpin growing dividends in the coming years. For example, it is forecasting dividends per share of 17.3 cents in FY 2023 and 18 cents in FY 2024. Based on its current share price of $3.23, this implies yields of 5.35% and 5.6%, respectively.

QBE Insurance Group Ltd (ASX: QBE)

Another ASX 200 dividend share that has been tipped as a buy is QBE. It is of course one of the world's largest insurance companies.

Analysts at Morgans are very positive on the company due to rising premiums and cost reductions. It recently retained its add rating with a $14.93 price target on its shares.

Morgans notes that with "strong rate increases still flowing through QBE's insurance book, investment yields improving and further cost-out benefits to come, we expect QBE's earnings profile to improve strongly over the next few years."

It also expects this to lead to a big increase in dividend payments from next year. Morgans is forecasting a 41.5 cents per share dividend in FY 2022 and then a 76.5 cents per share dividend in FY 2023. Based on the latest QBE share price of $11.73, this equates to yields of 3.5% and 6.5%, 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

Man holding out Australian dollar notes, symbolising dividends.
ETFs

Here's the current ASX dividend yield on the Vanguard Australian Shares ETF (VAS)

How much passive income can one expect from this popular index fund?

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Dividend Investing

NAB stock: Should you buy the 4.7% yield?

Do analysts think this banking giant is a buy for income investors?

Read more »

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

The smartest ASX dividend shares to buy with $500 right now

Analysts have put buy ratings on these shares for a reason.

Read more »

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

1 ASX dividend stock down 17% to buy right now

Analysts see a lot of value and big dividend yields in this beaten down stock.

Read more »

Excited woman holding out $100 notes, symbolising dividends.
Dividend Investing

3 high-yield ASX 300 dividend stocks to buy for your income portfolio

Analysts expect big dividend yields from these buy-rated shares.

Read more »

A golfer celebrates a good shot at the tee, indicating success.
Dividend Investing

These ASX dividend winners keep giving investors a pay rise

These stocks have built an impressive consecutive dividend growth streak.

Read more »

a man in a business shirt and tie takes a wide leap over a large steel trap with jagged teeth that is place directly underneath him.
Dividend Investing

3 ASX value traps I wouldn't buy for dividends right now

I'd stay away from these shares if you don't want a nasty dividend surprise.

Read more »

Smiling woman holding Australian dollar notes in each hand, symbolising dividends.
Dividend Investing

2 ASX passive income shares paying 8% and 13% yields

I think both these high yielding ASX dividend stocks offer long-term passive income potential.

Read more »