If you're an income investor looking for new portfolio additions, then read on!
That's because listed below are two ASX 200 dividend stocks that brokers rate highly. Here's why they are bullish:
NIB Holdings Limited (ASX: NHF)
The first ASX 200 dividend stock that has been named as a buy is private health insurer, NIB.
Goldman Sachs is a fan of the company. This is due to the positive outlook for both its core and non-core businesses. It explains:
We await further detail on claims inflation trends from the MPL result later this week. We have a Buy on NHF reflecting 1) Strong growth / recovery in non-ARHI businesses especially in Travel and IIHI. 2) Strong PH growth and market share gains in ARHI. 3) Buffers built across ARHI expenses, investments, write downs and provisioning that can be unwound to support UOP growth over time.
As for dividends, Goldman expects fully franked dividends per share of 31 cents in FY 2024 and 33 cents in FY 2025. Based on the current NIB share price of $8.24, this will mean 3.75% and 4% dividend yields, respectively.
Goldman has a buy rating and $8.75 price target on its shares.
Westpac Banking Corp (ASX: WBC)
The team at Morgans continues to believe that Westpac is an ASX 200 dividend stock to buy.
Although the broker was not overly impressed with the banking giant's performance during the third quarter, it remains positive due to its valuation and dividend yield. The broker explains:
We have made material downgrades to our forecasts and reduced our target price to $23.02 mainly because of the unexpectedly high cost growth. The share price performance is disappointing for existing WBC investors. However, for a new investor we think the current price offers potential returns of c.19% (including c.7% cash yield) even after allowing for the reduced target price.
As for dividends, the broker is expecting fully franked dividends per share of $1.46 in FY 2023 and $1.47 in FY 2024. Based on the current Westpac share price of $21.79, this will mean yields of 6.7% and 6.75%, respectively.
Morgans has an add rating and $23.02 price target on the bank's shares.
