While the Australian share market typically provides investors with an average dividend yield of 4%, income investors don't have to settle for that because of the ASX 200 shares listed below.
Here are two ASX 200 shares with big forecast yields and even bigger upside potential:
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Charter Hall Retail REIT (ASX: CQR)
Analysts at Citi are positive on this supermarket anchored neighbourhood and sub-regional shopping centre markets-focused property company. They note that the company has "defensive net property income growth despite rising interest rate profile."
As a result, last month, the broker put a buy rating and $4.50 price target on its shares. This implies potential upside of 14.5% based on the current Charter Hall Retail REIT share price of $3.93.
In addition, Citi is expecting the company to be in a position to increase its dividend to 26 cents per share in FY 2023 and then maintain it at this level in FY 2024. This will mean very generous yields of 6.6% for investors.
Pilbara Minerals Ltd (ASX: PLS)
Thanks to strong lithium prices, this mining company could be destined to pay some big dividends in the coming years. That's the view of the team at Macquarie, which expect this ASX 200 lithium giant to return a good portion of its bountiful free cash flow to shareholders this year.
The broker is forecasting a 45 cents per share dividend in FY 2023 and a 34 cents per share dividend in FY 2024. Based on the latest Pilbara Minerals share price of $4.19, this equates to yields of 10.7% and 8.1%, respectively.
And with Macquarie having an outperform rating and $7.70 price target on Pilbara Minerals' shares, this suggests potential upside of almost 84%.
