Fortunately for income investors, the ASX 200 is not short of dividend-paying shares.
This makes the share market a great place to generate passive income.
But which ASX 200 dividend stocks could be good options right now for a passive income boost? Two that have recently been rated as buys are named below:
Charter Hall Group (ASX: CHC)
The first ASX 200 dividend stock that could be a buy is Charter Hall.
It is a property fund manager and developer managing a suite of institutional, wholesale, and retail unlisted property funds in which it holds investments. Its funds are diversified across the office, retail, industrial and residential sectors.
Citi is positive on the company and was pleased with its recent update. It said:
Positive read through from recent revaluations and asset sales We see potential upside to CHC's shares and reiterate Buy with peer revaluations and transaction evidence suggesting a slower and a smaller amount of asset value decline, than implied in listed market pricing.
As for dividends, the broker is forecasting dividends per share of 43 cents in FY 2023 and 45 cents in FY 2024. Based on the current Charter Hall share price of $10.79, this will mean yields of 4% and 4.2%, respectively.
Citi has a buy rating and $14.60 price target on its shares.
Rio Tinto Ltd (ASX: RIO)
Goldman Sachs believes that Rio Tinto could be an ASX 200 dividend stock to buy.
The broker is positive on the company due to its production growth outlook, strong free cash flow generation, and attractive valuation.
In respect to the latter, it notes the mining giant's "compelling relative valuation vs. peers (0.9xNAV vs. BHP 1.05xNAV and FMG 1.5xNAV), [and] strong FCF and Div yield with our bullish view on iron ore, aluminium and copper prices."
As for dividends, Goldman is expecting Rio Tinto to pay fully franked dividends per share of US$3.84 (A$5.58) in FY 2023 and then US$4.31 (A$6.26) in FY 2024. Based on the latest Rio Tinto share price of $117.75, this will mean yields of 4.7% and 5.3%, respectively.
Goldman currently has a conviction buy rating and $130.70 price target on its shares.
