Morgans names the best ASX 200 dividend shares to buy next week

These dividend shares could tick a lot of boxes for income investors.

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Thankfully for income investors, there are plenty of quality ASX 200 dividend shares to choose from on the Australian share market.

Two that have been tipped as best buys by analysts at Morgans in October are listed below. Here's why they could be buys next week:

QBE Insurance Group (ASX: QBE)

Morgans is feeling positive about this insurance giant and has an add rating and a $17.16 price target on its shares.

The broker believes that QBE is well-positioned to benefit from rate increases and cost outs. It explains:

With strong rate increases still flowing through QBE's insurance book, and further cost-out benefits to come, we expect QBE's earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on 8x FY24F PE.

As for income, the broker has pencilled in dividends per share of 66.2 cents in FY 2023 and 93.3 cents in FY 2024. Based on the current QBE share price of $15.56, this will mean a yield of 4.25% and 6%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share that could be a buy according to Morgans is Wesfarmers. The broker has an add rating and a $55.15 price target on its shares.

It likes Wesfarmers due to its strong retail brands and belief that it will perform positively despite the tough economic environment. 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 and market share gains in a softening macroeconomic environment.

Morgans is forecasting fully franked dividends of $1.91 per share in FY 2024 and $2.18 per share in FY 2025. Based on the latest Wesfarmers share price of $51.65, this will mean yields of 3.7% and 4.2%, respectively.

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 Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. 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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