If you're looking for passive income, then it could be worth checking out the two ASX 200 dividend shares listed below that Goldman Sachs is bullish on.
Here's what you need to know about these income options:
ANZ Group Holdings Ltd (ASX: ANZ)
Goldman recently upgraded this banking giant's shares to a buy rating with a $27.38 price target. It also popped them on its coveted conviction list.
The broker made the move on the belief that the company's institutional business will be a key driver of outperformance in a tough operating environment. It commented:
Institutional is ANZ's largest division, representing 44%/33% of Group RWAs/revenues, and the division's 1H23 PPOP RoRWA increased to 2.2%, from a 2H16 trough of 1.2%. Our assessment of the profitability of this division concludes that these return improvements are largely sustainable.
As for dividends, the broker is forecasting fully franked dividends per share of $1.62 in both FY 2023 and FY 2024. Based on the current ANZ share price of $23.99, this will mean dividend yields of 6.75%.
Endeavour Group Ltd (ASX: EDV)
Goldman Sachs also believes that this drinks company could be a top ASX 200 dividend share to buy right now. Its analysts currently have a buy rating and a $7.50 price target on the company's shares.
The broker likes the company due to its industry-leading position and attractive valuation. With respect to the latter, it explains:
Our retail valuation multiple is unchanged at 19x. Net net, our new TP of A$7.50/sh (from A$7.80/sh) implies FY24e P/E of ~23x vs historical average of ~24x. The stock is currently trading at ~20x P/E implying 2.4x PEG which remains attractive relative to the rest of our Consumer coverage.
As for income, the broker is forecasting a fully franked dividend of approximately 22 cents per share in FY 2023 and 24 cents per share in FY 2024. Based on the current Endeavour share price of $6.31, this equates to yields of 3.5% and 3.9%, respectively.
