Are you looking for ASX 200 dividend stocks to add to your income portfolio in August? If you are, then you may want to look at the two industry leaders named below that have been tipped as buys by analysts.
Here's why the broker rates these dividend shares highly right now:
Endeavour Group Ltd (ASX: EDV)
The first ASX 200 dividend stock that could be a buy in August is Endeavour. It is the drinks giant behind the Dan Murphy's and BWS brands.
Goldman Sachs likes the company due to its industry-leading position and attractive valuation following recent weakness. It explains:
EDV, which has been over-sold on recent Victorian gaming restriction news that is unlikely to have a significant impact on earnings and hence we reiterate Buy, and now add to Conviction List given attractive valuation for a clear leader in a staples Retailer; and 2) accelerated consolidation opportunity remains in tougher hotels environment.
In respect to dividends, the broker is forecasting a fully franked dividend of approximately 21 cents per share in FY 2023 and 22 cents per share in FY 2024. Based on the current Endeavour share price of $6.08, this equates to dividend yields of 3.5% and 3.6%, respectively.
Goldman has a buy rating and a $7 price target on the company's shares.
Wesfarmers Ltd (ASX: WES)
Another ASX 200 dividend stock that has been named as a buy is Wesfarmers.
It is the name behind businesses such as Bunnings, Kmart, Officeworks, Priceline, Target, and WesCEF. Wesfarmers is also in the process of adding Silk Laser Australia Ltd (ASX: SLA) to its portfolio.
Morgans is a fan of Wesfarmers. Its analysts believe the company is well-placed to continue its solid performance in the near term thanks to its focus on value. It said:
WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. We believe WES's businesses, which have a strong focus on value, remain well-placed for growth despite softening macro-economic conditions.
Its analysts are expecting this to lead to fully franked dividends per share of $1.79 in FY 2023 and $1.92 in FY 2023. Based on the current Wesfarmers share price of $49.65, this will mean yields of 3.6% and 3.9%, respectively.
Morgans has an add rating and a $55.50 price target on Wesfarmers' shares.
