'Attractive value & dividend': 2 alluring ASX 200 shares to buy now

A buying opportunity has opened up for two maligned stocks, reckons Baker Young's Toby Grimm.

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If you're stuck for S&P/ASX 200 Index (ASX: XJO) investment ideas at the moment, you are not the only one.

The fact is that we are living in uncertain times. Inflation is still high, no matter what the bulls are telling you, and the high cost of mortgages and life in general could hit the economy hard over the next few months.

It's no surprise stock selection is a tough game right now. So this could be an opportune time to take a lead from the professionals.

As an example, here's a pair of ASX 200 dividend stock picks from Baker Young managed portfolio analyst Toby Grimm:

This bank can fight through current troubles

Banks are in the "too hard" basket for many investors currently, but Grimm is bullish on Westpac Banking Corp (ASX: WBC).

"This bank has underperformed its major peers by an average of 33% during the past five years," Grimm told The Bull.

"Following a better-than-expected 2023 half year result, we see attractive relative value and dividend yield."

Indeed the Westpac share price has plunged 9.6% over the past year, and almost 7% year to date.

That's left it with a decent fully franked dividend yield of 6.3%.

Grimm acknowledged the bank has headwinds, but it's under control.

"Cost pressures continue to be a major detractor, but they are a controllable factor."

Other professionals are divided over the merits of Westpac shares.

According to CMC Markets, five out of 17 analysts rate the stock as a buy. Six reckon it's a hold while another six are urging investors to sell.

This healthcare provider can fight through current troubles

Private hospital operator Ramsay Health Care Ltd (ASX: RHC) saw its share price fall off a cliff at the start of this month.

Grimm attributed this to investor disappointment with its third-quarter numbers.

"Like many other firms, Ramsay Health had experienced cost pressures, which had a negative impact."

But he expects this headwind to be transitory.

"We expect cost pressures to ease as operating leverage resumes with a continuing recovery in post pandemic revenues, which was evident in the results."

Ramsay Health shares have tumbled more than 24% over the past year, and now pay out a 1.6% fully franked dividend yield.

Grimm's peers are also somewhat polarised about Ramsay shares.

CMC Markets currently shows six out of 19 analysts rating the stock as a buy, with 11 recommending a hold.

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 no position in any of the stocks mentioned. 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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