Although interest rates on offer with saving accounts and term deposits are improving, they still can't compete with the dividend yields on offer with these ASX 200 shares.
Here's what analysts are forecasting from these high yield ASX dividend shares:
Image source: Getty Images
Mineral Resources Ltd (ASX: MIN)
The first ASX 200 dividend share to look at is Mineral Resources.
It is a mining and mining services company with exposure to iron ore and lithium. The latter operations are expected to support bumper earnings growth and big dividends in the coming years.
This certainly was the case during the first half, with Bell Potter noting that "MIN reported that lithium contributed 80% of group EBITDA."
In respect to dividends, the broker is expecting fully franked dividends per share of $3.73 in FY 2023 $9.41 in FY 2024, and $9.60 in FY 2025. Based on the current Mineral Resources share price of $80.59, this will mean 4.3%, 10.8%, and 11% dividend yields, respectively.
Bell Potter has put a buy rating and $110.00 price target on its shares.
Westpac Banking Corp (ASX: WBC)
Another ASX 200 dividend share that could be a buy is Westpac. It is Australia's oldest bank and one of the big four players.
Thanks to a combination of rising interest rates and cost reductions, Morgans believes the bank has "the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful."
It believes this should support some big dividend payments and notes that the "yield including franking is attractive for income-oriented investors."
Morgans is forecasting fully franked dividends per share of 153 cents in FY 2023, 159 cents in FY 2024, and 161 cents in FY 2025. Based on the current Westpac share price of $21.66, this will mean yields of 7%, 7.3%, and 7.4%, respectively.
The currently has an add rating and $25.80 price target on its shares.
