There are a lot of ASX 200 dividend shares to choose from, but two that could be top picks right now are listed below.
Here's why broker believe these could be the dividend shares to buy now:
Aurizon Holdings Ltd (ASX: AZJ)
The first ASX 200 dividend share that Morgans is tipping as a buy is Aurizon.
It is Australia's largest rail freight operator, connecting miners, primary producers, and industry with international and domestic markets through its extensive national rail and road network.
Macquarie sees value in the company's shares at present. It has an outperform rating and a $4.04 price target on them.
The broker is also expecting some attractive dividend yields in the near term. It has pencilled in partially franked dividends of 19.1 cents per share in FY 2024 and then 24.5 cents per share in FY 2025. Based on the latest Aurizon share price of $3.59, this will mean yields of 5.3% and 6.8%, respectively.
South32 Ltd (ASX: S32)
Another ASX 200 dividend share that could be a buy is diversified miner South32.
Citi is a fan of the miner and highlights that "key spot commodity prices are now materially higher than the street's expectations for FY24."
It is for this reason that the broker recently upgraded South32's shares to a buy rating with a $3.90 price target.
And while its analysts are not expecting a big yield from its shares this year, they believe the years that follow will be particularly fruitful. Citi expects fully franked dividends of 10 cents per share in FY 2024, 20 cents per share in FY 2025, and then 27 cents per share in FY 2026. This equates to yields of 2.8%, 5.7%, and 7.7%, respectively.
