The benchmark ASX 200 index has plenty of income shares to choose from. But which ones offer value for money now?
Two that have been tipped as buys are listed below. Here's what you need to know about them:
Transurban Group (ASX: TCL)
The first ASX 200 income share to buy is this leading toll road operator.
Transurban owns a world-class portfolio of toll roads in Australia and North America that cut travel times for millions of drivers each year. In addition, the company has a significant project pipeline that looks likely to underpin further solid growth in the coming years.
Another positive is the company's inflation exposure. As Transurban's toll road concessions are inflation linked, it stands to benefit greatly in the current environment.
It is partly for this reason that Citi is positive on the company. It currently has a buy rating and $15.70 price target on its shares.
In addition, the broker is forecasting dividends per share of 53 cents in FY 2023 and then 55.8 cents in FY 2024. Based on the current Transurban share price of $14.06, this will mean yields of 3.8% and 4%, respectively.
Westpac Banking Corp (ASX: WBC)
Another ASX 200 income share that could be a buy is Australia's oldest bank, Westpac.
With the banking sector benefiting from rising rates, the big four banks have been tipped to deliver solid earnings and dividend growth in the near term.
Westpac could potentially even grow even quicker thanks to its bold cost cutting plans.
It is because of this that Goldman Sachs has named it as the best big bank to buy right now. Its analysts have a conviction buy rating and $27.68 price target on its shares.
As for dividends, Goldman 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 $23.50, this will mean yields of 6.3% and 6.8%, respectively.
