Macquarie Group Ltd (ASX: MQG) has an income portfolio that it believes represents a starting point to form a portfolio with income characteristics.
It also highlights that this portfolio is created with a focus on a higher degree of earnings certainty, backed by strong cash flows, and highly tax effective dividend income.
Among its top ASX 200 dividend share picks right now are the shares listed below:
Telstra Group Ltd (ASX: TLS)
The largest holding in Macquarie's income portfolio is this telco giant. It takes top spot with a weighting of 8.8%. The broker has an outperform rating and $4.64 price target on Telstra's shares and is forecasting a fully franked 17 cents per share dividend in FY 2023. Based on the current Telstra share price of $4.16, this represents a 4.1% dividend yield. It is also worth noting that its price target implies almost 12% upside from current levels.
National Australia Bank Ltd (ASX: NAB)
The next largest holding in the portfolio with a weighting of 8.4% is this ASX 200 banking share. However, the broker still only has a neutral rating and $31.00 price target on its shares. This compares to the current NAB share price of $30.10. In respect to dividends, Macquarie is forecasting a $1.61 per share fully franked dividend in FY 2023. This provides investors with a 5.3% yield at current levels.
Westpac Banking Corp (ASX: WBC)
The third largest holding its income portfolio is Westpac with a 7.4% weighting. Interestingly, that's despite the broker having an underperform rating on its shares. Though, Macquarie's price target of $23.50 is still approximately 3% higher than where Australia's oldest bank's shares currently trade. As for dividends, the broker is forecasting an 131 cents per share fully franked dividend in FY 2023. This represents a 5.7% dividend yield for investors.
