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

ETF written in white on a multi coloured background.
Dividend Investing

Why I'd buy these 2 ASX ETFs for $10,000 a year in passive income

These two ASX ETFs provide a diversified means to earning a $10,000 yearly passive income.

Read more »

Woman holding $50 and $20 notes.
Dividend Investing

8 ASX shares going ex-dividend next week

Commonwealth Bank, Resmed, and AMP are among the ASX shares with ex-dividend dates next week.

Read more »

Woman relaxing on her phone on her couch, symbolising passive income.
Dividend Investing

Why I'd buy Telstra and these ASX dividend shares for passive income

These shares offer the type of qualities I would want from passive income investments.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Dividend Investing

2 ASX dividend shares I'd buy today for passive income

These ASX dividend shares can deliver a strong passive income investors.

Read more »

Australian notes and coins symbolising dividends.
Communication Shares

Everything you need to know about the Telstra dividend

Owners of Telstra shares can look forward to another good dividend.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Bank Shares

Revealed: The ASX bank share with the highest dividend yield today

The highest-yielding bank right now might surprise you.

Read more »

An older gentleman leans over his partner's shoulder as she looks at a tablet device while seated at a table.
Dividend Investing

134,814 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension

I’d say this ASX stock is more appealing than the Age Pension.

Read more »

A man in a sweatshirt holds two different phones to compare telco services.
Dividend Investing

How many Telstra shares do I need to buy to generate $10,000 in passive income?

Telstra pays two fully-franked dividends per year.

Read more »