Fortunately for income investors, the ASX 200 index is home to plenty of companies that pay dividends to their shareholders.
Two that could be top options for income investors to buy right now are listed below. Here's what you need to know about these ASX 200 dividend shares:
Bank of Queensland Limited (ASX: BOQ)
Bank of Queensland could be an ASX 200 dividend share to buy.
It is the challenger bank behind the eponymous Bank of Queensland brand and the ME Bank and Virgin Money Australia brands.
The team at Citi is very positive on the company and believes the market has been wrong about its net interest margin improvement potential. It recently commented:
[M]anagement dispelled these modest expectations, with bullish commentary on the exit NIM. While costs were a slight disappointment, proportionally they will be much less than revenue upgrades, and as a result we think consensus moves higher.
The broker is expecting this to lead to fully franked dividends per share of 58 cents in FY 2023 and then 60 cents per share in FY 2024. Based on the current Bank of Queensland share price of $7.29, this will mean big yields of 8% and 8.2%, respectively.
Citi also sees plenty of upside for its shares with its buy rating and $8.75 price target.
Wesfarmers Ltd (ASX: WES)
Another ASX 200 dividend share that could be a buy is Wesfarmers.
Wesfarmers is the conglomerate behind a collection of quality businesses across several sectors. These include retailers such as Bunnings, Kmart, Priceline, and Officeworks, as well as industrial businesses Coregas and Covalent Lithium.
Morgans is a fan of the company and believes it is well-placed for growth. It commented:
WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. We believe WES's businesses, which have a strong focus on value, remain well-placed for growth despite softening macro-economic conditions.
In respect to dividends, Morgans is forecasting fully franked dividends per share of $1.82 in FY 2023 and $1.89 in FY 2024. Based on the current Wesfarmers share price of $45.23, this will mean yields of 4% and 4.2%, respectively.
Morgans currently has an add rating and $55.60 price target on its shares.
