Buy Westpac and this ASX 200 dividend share: brokers

Here are two ASX 200 dividend shares to buy….

| 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 the two listed below could be worth considering. Both have been named as buys by top brokers and tipped to provide investors with attractive yields.

Here's what you need to know about these ASX 200 dividend shares:

Australian dollar notes rolled into bundles.

Image source: Getty Images

Collins Foods Ltd (ASX: CKF)

The first ASX 200 dividend share that could be worth considering is Collins Foods.

Collins Foods is one of the largest operators of KFC restaurants in Australia and has a growing presence in Europe.

While its performance in 2022 has been disappointing due to inflationary pressures and the significant underperformance of the Taco Bell brand, Morgans believes that investors should be patient and remains positive on the company's long term outlook.

As a result, it appears to see recent share price weakness as a buying opportunity. The broker has an add rating and $9.50 price target on its shares.

In respect to dividends, Morgans is expecting fully franked dividends of 24 cents per share in FY 2023 and 26 cents per share in FY 2024. Based on the current Collins Foods share price of $7.04, this will mean attractive dividend yields of 3.4% and 3.7%, respectively.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that could be a buy is Westpac.

Goldman Sachs is positive on Australia's oldest bank and has named it as its top option in the banking sector right now. The broker has a conviction buy rating and $27.60 price target on Westpac's shares.

Goldman is a fan of Westpac due to its positive net interest margin (NIM) trajectory, its cost reduction target, and attractive valuation.

In respect to its NIM, Goldman highlights that "management's guidance on its FY23 NIM trajectory was better than we had previously anticipated." This could bode well for its earnings and dividends in the near term.

Speaking of which, the broker is forecasting fully franked dividends of 148.4 cents per share in FY 2023 and 160 cents per share in FY 2024. Based on the current Westpac share price of $23.55, this will mean yields of 6.3% and 6.8%, respectively.

Motley Fool contributor James Mickleboro has positions in Collins Foods and Westpac Banking. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Collins Foods. The Motley Fool Australia has recommended Collins Foods and Westpac Banking. 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

Australian notes and coins symbolising dividends.
Dividend Investing

$1,000 buys 100 shares in an incredibly reliable ASX 200 dividend stock

This business has been very resilient and still looks like a great buy.

Read more »

Woman holding $50 notes with a delighted face.
Dividend Investing

Why this ASX dividend share is a retiree's dream

This stock can offer investors everything they want in retirement.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Why ASX dividend investing still works for building long-term wealth

Here's a strategy that continues to deliver results for investors.

Read more »

Happy young woman saving money in a piggy bank.
Dividend Investing

How to build a $10,000 annual income with ASX shares

For me, building income is less about chasing yield and more about consistency, quality, and time.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

3 ASX dividend shares near 52-week lows with very tempting yields

These REITs now offer higher yields and rebound potential.

Read more »

Woman relaxing at home on a chair with hands behind back and feet in the air.
Dividend Investing

My top ASX passive income picks for April

Passive income takes time to build, but I think starting with the right mix of assets can make a big…

Read more »

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

Own ASX IOZ or other iShares ETFs? Here is your next dividend

BlackRock has announced the next round of distributions for a range of its ASX iShares ETFs.

Read more »

A woman looks excited as she holds Australian dollars in the air.
Dividend Investing

ASX passive income: How much do I need to invest in to earn $1,000 per week?

It's more achievable than you'd think.

Read more »