Are you looking for ASX 200 dividend shares to buy for a passive income boost? If you are, then it could be a good idea to check out the two listed below that have been tipped to offer big yields.
Here's what brokers are saying about them:
Image source: Getty Images
Aurizon Holdings Ltd (ASX: AZJ)
The first high yield ASX 200 dividend share that has been named as a buy is Aurizon.
Aurizon is Australia's largest rail freight operator. It connects miners, primary producers, and industry with international and domestic markets via its extensive national rail and road network.
While Morgans has a view doubts over Aurizon's strategy, the broker remains very positive due to the quality of the company's operations. It also sees a lot of value in its shares at the current level. The broker commented:
We are not yet convinced that the capital AZJ is deploying into the lower quality Bulk business (both One Rail Bulk acquisition and growth capex) to diversify its operations away from coal exports and tap into new growth avenues will deliver appropriate risk-adjusted returns over time. Nonetheless, we see value in the stock at current prices, supported by the far higher quality Network and Coal haulage businesses. ADD retained.
In respect to dividends, Morgans expects partially franked dividends of 17 cents per share in FY 2023 and then 19 cents per share in FY 2024. Based on the latest Aurizon share price of $3.57, this will mean yields of 4.8% and 5.3%, respectively.
Morgans currently has an add rating and $3.81 price target on its shares.
Westpac Banking Corp (ASX: WBC)
Another ASX 200 dividend share that has been named as a buy is banking giant Westpac.
Goldman Sachs remains very positive on Australia's oldest bank and believes that it is the top bank share to buy right now. This is due largely to its cost outlook in the current inflationary environment. It said:
Despite WBC walking away from its FY24E cost target of A$8.6 bn, we expect a broadly flat cost trajectory over the next two years, which will see WBC outperform peers in this relatively difficult inflationary environment.
Goldman expects this to support fully franked dividends per share of 140 cents in both FY 2023 and FY 2024. Based on the current Westpac share price of $20.30, this will mean huge yields of 6.9% in both financial years.
Goldman currently has a buy rating and a $24.67 price target on the bank's shares.
