Goldman Sachs says buy these ASX 200 shares for passive income

Here's why Goldman thinks these dividend shares could be top options for income investors right now.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Are you looking for ASX 200 dividend shares to buy? If you are, you may want to check out the two listed below that Goldman Sachs has tipped to provide attractive yields.

Here's what you need to know about these ASX dividend shares today:

A man holding a cup of coffee puts his thumb up and smiles with a laptop open.

Image source: Getty Images

Elders Ltd (ASX: ELD)

The first ASX 200 dividend share that Goldman rates as a buy is agribusiness company, Elders.

Its analysts are very positive on the company's outlook and feel that recent weakness has created a buying opportunity for investors. Particularly given its belief that "the fundamentals of this company remain unchanged, and strong" and that "ELD is very well positioned to grow through the cycle."

The broker currently has a buy rating and $13.20 price target on the company's shares at present.

As for dividends, Goldman is forecasting fully franked dividends per share of 47 cents in FY 2023 and 52 cents in FY 2024. Based on the current Elders share price of $8.39, this will mean yields of 5.6% and 6.2%, respectively.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that has been named as a buy by Goldman Sachs is banking giant Westpac.

Its analysts highlight that "while NIM pressures are accelerating across the sector, WBC's shorter-duration replicating portfolio, and current balance sheet performance, should see its NIM outperform peers."

The broker currently has a conviction buy rating and $25.86 price target of the banking giant's shares. This compares very favourably to the latest Westpac share price of $22.25.

In addition, it is forecasting some very attractive fully franked dividend yields in the coming years.

For example, Goldman Sachs expects fully franked dividends of 144 cents per share in FY 2023 and then 150 cents per share in FY 2024. This equates to yields of 6.5% and 6.75%, respectively.

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 recommended Elders and Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A man wearing a colourful shirt holds an old fashioned phone to his ear with a look of curiosity on his face as though he is pondering the answer to a question.
Communication Shares

Buying Telstra shares? Here's the yield you'll get today

Telstra's dividend yield just went up.

Read more »

Miner looking at a tablet.
Resources Shares

Everything you need to know about the new Fortescue dividend

Fortescue's latest payout is worth checking out.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

This fund just declared a dividend yield of better than 7%

A difficult year has not trimmed the dividend for this share.

Read more »

an older woman holds a handful of paper money in her hands and looks at them with a slightly crazy smile on her face wearing her spectacles on a string as a lot of older people do.
Dividend Investing

2 ASX dividend shares with yields above 7%

These stocks offer significant passive income.

Read more »

a graph indicating escalating results
Dividend Investing

$1,000 buys 326 shares in an incredibly reliable ASX dividend stock

This business offers large and growing dividend payouts.

Read more »

A man happily kisses a $50 note scrunched up in his hands representing the best ASX dividend stocks in Australia today
Dividend Investing

This ASX dividend share just blew me away

This dividend growth is crazy.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

How many Brambles shares do I need to buy for $5,000 per year of passive income?

Find out how much you could earn off your Brambles shares.

Read more »

Woman flexes muscles after donating blood.
Healthcare Shares

CSL shares: 1 number that investors shouldn't ignore

This one number has me rethinking a CSL investment.

Read more »