If you're an income investor looking for new portfolio additions, then read on!
That's because listed below are two ASX 200 dividend shares that analysts at Goldman Sachs rate highly. Here's why they are bullish on these shares:
NIB Holdings Limited (ASX: NHF)
The first ASX 200 dividend share that has been named as a buy is private health insurer, NIB.
Goldman Sachs is bullish on the company due to the positive outlook for its core business. It explains:
We are Buy-rated on NHF given: 1) it offers defensive exposure to the private health insurance sector which is experiencing favourable operating trends, 2) claims environment remains low with no immediate indications of a bounce back in claims, 3) DCL provisions to cover a bounce back in claims are proving redundant, 4) significant policyholder give back incentives suggest claiming environment remains well below expectations, 5) strong recovery in non-resident volume post Covid-19 through the return of international students, workers and visitor arrivals.
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 $7.71, this will mean 4% and 4.25%, respectively.
Goldman has a buy rating and $8.75 price target on its shares.
Suncorp Group Ltd (ASX: SUN)
Another ASX 200 dividend share that Goldman Sachs thinks could be a buy is Suncorp. It is one of Australia's leading insurance companies.
Goldman likes the insurance giant due to tailwinds in the general insurance market. It explains:
We are favourably disposed to Suncorp, noting in large part the tailwinds that exist in the general insurance market – i.e., very strong renewal premium rate increases and the benefit of higher investment yields. We think the strong rate momentum that SUN is getting should likely offset volume pressures as they optimise their risk exposures in certain portfolios such as home but also likely policy lapses / buy downs.
As for dividends, the broker is forecasting fully franked dividends per share of 76 cents in FY 2024 and 81 cents in FY 2025. Based on the current Suncorp share price of $13.71, this will mean yields of 5.5% and 5.9%, respectively.
Goldman Sachs has a buy rating and a $15.13 price target on its shares.
