2 strong ASX 200 dividend shares Goldman Sachs rates as buys

These dividend shares have been given the thumbs up by this top broker.

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Wanting some new additions to your income portfolio?

If you are, then check out the two ASX 200 dividend shares listed below that analysts at Goldman Sachs rate highly. Here's why they are bullish:

NIB Holdings Limited (ASX: NHF)

Goldman Sachs believes this private health insurer could be an ASX 200 dividend share to buy right now.

The broker likes NIB due to the increasingly positive outlook for both its core and non-core businesses. It said:

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.

In respect to dividends, Goldman is forecasting 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 $7.72, this would mean 4% and 4.3% dividend yields, respectively.

Goldman currently has a buy rating and $8.75 price target on NIB's shares.

Suncorp Group Ltd (ASX: SUN)

Another ASX 200 dividend share that Goldman Sachs rates as a buy is Suncorp. It is of course one of Australia's largest insurance companies, operating under a number of brands such as AAMI, Apia, Bingle, GIO, Shannons, Suncorp, and Vero.

Goldman believes that the outlook for the general insurance market is positive and expects this to support earnings and dividend growth in the coming years. 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 income, 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 $14.08, this will mean yields of 5.4% and 5.75%, respectively.

Goldman Sachs has a buy rating and a $15.13 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended NIB Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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