Fortunately for income investors, there are plenty of ASX 200 dividend shares to choose from. But two in particular that could be strong buys right now are listed below.
Here's why experts say these could be dividend shares to buy:
Coles Group Ltd (ASX: COL)
The first ASX 200 dividend share that has been named as a buy is supermarket giant Coles.
Citi is bullish on the company and believes it is well-placed to deliver solid earnings growth through to at least FY 2025. The broker is forecasting earnings per share of 83 cents in FY 2023, 86 cents in FY 2024, and then 95 cents in FY 2025.
And based on Coles paying out in the region of 80% to 85% of its earnings to shareholders, Citi expects this to underpin fully franked dividends per share of 69 cents in FY 2023, 73 cents in FY 2024, and then 80 cents in FY 2025. Based on the current Coles share price of $18.22, this represents yields of 3.8%, 4% and 4.4%, respectively.
Citi has a buy rating and $20.20 price target on its shares.
Transurban Group (ASX: TCL)
Another high-quality ASX 200 dividend share that could be a buy is Transurban.
It is one of the world's leading toll road operators with a collection of important roads across several locations. This includes CityLink in Melbourne, the Cross City Tunnel in Sydney, AirportlinkM7 in Brisbane, and 95 Express Lanes in Greater Washington, the United States.
The good news is that traffic is booming on its roads again, with the company recently revealing record volumes during the first half of FY 2023. This bodes well for the future, particularly given its inflation-linked price increases. In addition, Transurban has a large development pipeline to support its growth long into the future.
In respect to dividends, the team at UBS is forecasting dividends per share of 57 cents in FY 2023 and then 61 cents in FY 2024. Based on the current Transurban share price of $14.74, this will mean yields of 3.85% and 4.1%, respectively.
UBS has a buy rating and $15.45 price target on its shares.
