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

Small girl giving a fist bump with a piggy bank in front of her.
Dividend Investing

Own ASX IOZ or other iShares ETFs? Here are the dividends you'll get today

BlackRock will pay your dividends today.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

2 ASX shares with dividend yields above 8%

These stocks can provide significant levels of passive income.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

3 excellent ASX dividend shares with 5% to 7% yields to buy

Analysts think these dividend shares are top buys this month.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Dividend Investing

Forget BHP shares! Buy these ASX dividend shares instead for passive income

BHP is solid, but it’s not one of my preferred picks today for passive income.

Read more »

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

Where I'd invest on the ASX for passive income right now

Building passive income isn’t just about yield. These ASX shares highlight what really matters over time.

Read more »

multiple road lanes with cars
Dividend Investing

Which ASX dividend share could you buy and hold forever?

To perform, this ASX stock simply needs people to keep moving.

Read more »

ETF written on wooden blocks with a magnifying glass.
Dividend Investing

Why this is the best income ASX ETF for retirees

This fund offers passive income and growth.

Read more »

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

How many Wesfarmers shares do I need to buy for $1,000 of annual passive income?

Can the Bunnings and Kmart owner deliver good passive income?

Read more »