Are you looking for some ASX 200 dividend shares to add to your income portfolio?
If you are, then experts think the two listed below could be top options this month. Here's what you need to know about them:
Coles Group Ltd (ASX: COL)
The first ASX 200 dividend share that has been tipped as a buy is Coles.
It is one of Australia's largest retailers with a portfolio of over 800 supermarkets and over 900 liquor retail stores.
Citi was pleased with the company's first-half performance and remains positive on the company's outlook. It said:
Coles reported 1H23 EBIT from continuing operations of $1,058 million, ~6% ahead of Citi and consensus. Steven Cain leaves the business in good shape and we see Leah Weckert as the natural successor. Sales momentum has improved, owing somewhat to easier comps. Considering the historical 1H/2H skew of earnings, there appears to be upside to FY23e consensus EBIT.
The broker currently has a buy rating and $20.20 price target on its shares.
As for dividends, Citi is expecting fully franked dividends per share of 69 cents in FY 2023 and 71 cents in FY 2024. Based on the current Coles share price of $17.76, this implies yields of 3.9% and 4%, respectively.
Wesfarmers Ltd (ASX: WES)
This conglomerate could also be an ASX 200 dividend share to buy.
It may not own Coles anymore, but it still has a range of high quality businesses such as Bunnings, Covalent Lithium, Kmart, Officeworks, and Priceline.
Analysts at Morgans note that the company's recent half-year result "was marginally below our forecasts but well above consensus." Nevertheless, the broker sees plenty of value in its shares at the current level. It said:
Trading on 21.9x FY24F PE and 3.9% yield, we continue to see WES's valuation as attractive for a high-quality business with a diversified group of retail and industrial brands, a solid balance sheet, and an experienced leadership team that will continue delivering long-term value for shareholders.
Morgans has an add rating and $55.60 price target on Wesfarmers' shares.
In respect to dividends, the broker is forecasting fully franked dividends per share of $1.82 in FY 2023 and $1.89 in FY 2023. Based on the current Wesfarmers share price of $49.94, this will mean yields of 3.6% and 3.8%, respectively.
