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 ideas by analysts at Morgans in November are listed below. Here's why they could be worth a look:
QBE Insurance Group Ltd (ASX: QBE)
Due to premium increases and cost out benefits, Morgans thinks that this insurance giant would be a top ASX 200 dividend share to buy right now. 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 cents in FY 2023 and 93 cents in FY 2024. Based on the current QBE share price of $15.37, this will mean yields of 4.3% and 6%, respectively.
Morgans has an add rating and a $17.16 price target on its shares.
Transurban Group (ASX: TCL)
Another ASX 200 dividend share that Morgans has on its best ideas list is toll road giant Transurban.
The broker believes it is well-positioned for growth in the coming years thanks to toll increases and population growth. It explains:
TCL owns a pure play portfolio of toll road concession assets located in Melbourne, Sydney, Brisbane, and North America. This provides exposure to regional population and employment growth and urbanisation. Given very high EBITDA margins, earnings are driven by traffic growth (with recovery from COVID) and toll escalation (roughly 70% by at least CPI and approximately one-quarter at a fixed c.4.25% pa). We think TCL will continue to be attractive to investors given its market cap weighting (important for passive index tracking flows), the high quality of its assets, management team, balance sheet, and growth prospects.
In respect to dividends, the broker is expecting the above to underpin dividends per share of 62 cents in FY 2024 and 65 cents in FY 2025. Based on the latest Transurban share price of $12.47, this will mean yields of 5% and 5.2%, respectively.
Despite being a best idea, Morgans currently has a hold rating on its shares.