Goldman Sachs says these ASX 200 dividend shares are buys

Analysts at this investment bank are saying good things about these dividend shares.

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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:

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

The first ASX 200 dividend share that Goldman Sachs is tipping as a buy is ANZ Bank.

Earlier this week, the broker reaffirmed its view that ANZ is its preferred pick in the sector right now. This is due almost entirely to its institutional business. It explains:

We continue to prefer ANZ (Buy, on CL) given: i) we see further upside risk to ANZ Group returns from mix shifts in its Institutional division, ii) we still see current market competitive dynamics as a relative tailwind for Institutional NIMs, ii) our assessment of the profitability of this division concludes that these return improvements are largely sustainable, and iv) the stock is trading at a 26% discount to peers on 12-mo fwd PPOP, vs. 14% 15-yr average.

Goldman expects this to support fully franked dividends of $1.62 per share in FY 2023 and FY 2024. Based on the current ANZ share price of $24.84, this will mean yields of 6.5%.

The broker currently has a buy rating and a $27.38 price target on the bank's shares.

NIB Holdings Limited (ASX: NHF)

Another ASX 200 dividend share that Goldman Sachs rates highly is private health insurer NIB.

The broker likes NIB for a number of reasons, including its defensive qualities and favourable claims environment. 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.

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 $7.23, this would mean 4.3% and 4.55% yields, respectively.

Goldman currently has a buy rating and $8.75 price target on NIB's 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 positions in and 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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