'Safer than houses': 2 ASX 200 shares that are pumping out the dividends

Economic troubles have meant dividend stocks are popular at the moment. This pair is the best of the lot, according to one expert.

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The turbulent times that investors have faced last year and this year are forcing many to turn to ASX dividend shares for comfort.

The idea is that the income can make up for the lack of capital growth, and the relative popularity of such stocks will keep their valuations steady.

Wilson Asset Management analysts this week named two such S&P/ASX 200 Index (ASX: XJO) shares that are ripe for buying at the moment:

'Exceptional asset allocators'

DEXUS Property Group (ASX: DXS) is a real estate group that's best known for its office assets.

Despite the flight of workers away from the office after COVID-19, the stock has been "a favourite" for Wilson equity analyst Anna Milne's team.

"Although there has been this 'work from home forever' mentality, their last result really proved that this isn't the case," Milne said in a Wilson video.

"Operationally it looks like it's improving."

Dexus is paying out an impressive dividend yield of almost 7%.

But with the share price falling more than 31% since April, the biggest temptation for Milne is how cheap it is right now.

"For us, it's a valuation call. They're trading at a 30% discount to their net tangible assets. Their funds management business is valued at zero."

Plus the Wilson team reckons the people running Dexus are "exceptional asset allocators".

"So we're happy to be with them for the medium term — Dexus is still a buy."

Incredible pricing power

Telstra Group Ltd (ASX: TLS) shares may have been frustrating to own in the past, but the business seems to be on the up with a new chief executive at the helm.

The stock price is now 10.6% higher than it was six months ago, while paying a dividend yield of 3.84%.

Milne called the telecommunications stock "a certainty in an uncertain environment".

"The Telstra dividend is safer than houses. So Telstra's a buy," she said.

"The industry is acting extremely rationally. All their competitors are lifting prices, which means it gives them the green light to lift prices again come June-July. So we really like Telstra."

Milne is not the only one bullish on Telstra.

According to CMC Markets, a remarkable 13 out of 15 analysts currently rate the stock as a buy.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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