2 ASX 200 dividend shares that Citi rates as buys with big yields

The broker is expecting some generous dividends from these shares.

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Are you looking for ASX 200 dividend shares to buy for an income boost? If you are, then it could be a good idea to check out the two listed below that have been named as buys.

Here's what analysts at Citi are saying about them:

Charter Hall Retail REIT (ASX: CQR)

The first ASX 200 dividend share that has been named as a buy is the Charter Hall Retail REIT.

It is a property investment company with a focus on high-quality Australian supermarket-anchored convenience and convenience-plus shopping centres.

Citi is positive on the company because of its "defensive net property income growth despite rising interest rate profile." The broker was also pleased to see management reiterate its guidance in recent weeks. It said:

Charter Hall Retail reiterated it's FY24 operating earnings to be approximately 27.4 cpu and distribution payout range of 90% to 95%. Management highlighted that CQR's strategy remains consistent and focused on non-discretionary convenience retailers, providing income growth from a defensive portfolio. Continued recycling of capital and portfolio management with an increased focus on convenience long WALE retail is expected to continue to improve portfolio quality.

In light of this, Citi is forecasting dividends of 26 cents per share in FY 2024 and 27 cents per share in FY 2025. Based on the current Charter Hall Retail share price of $3.27, this equates to yields of 8% and 8.25%, respectively.

Citi has a buy rating and a $4.10 price target on its shares.

Transurban Group (ASX: TCL)

Another ASX 200 dividend share that Citi has named as a buy is Transurban. It is a leading toll road operator with a collection of roads including CityLink in Melbourne and the Cross City Tunnel in Sydney.

Citi is feeling very positive about the company's outlook. So much so, that it believes it is well-positioned to pay dividends ahead of guidance. It explains:

We believe TCL's FY24 DPS guidance of 62c is conservative and we forecast DPS of 63.4c given strong toll price growth, traffic growth on new road completions and a slower increase in debt costs in FY24 given a small proportion (c. 3%) of the debt book is maturing this year TCL is currently trading in-line with historic EV/EBITDA multiples at 22.5x, but we see upside given the strong EBITDA growth outlook (c.12% CAGR between Fy24-FY26). Retain Buy

Citi is forecasting dividends per share of 63.4 cents in FY 2024 and then 65 cents in FY 2025. Based on the current Transurban share price of $12.63, this will mean yields of 5% and 5.15%, respectively.

The broker currently has a buy rating and a $15.90 price target on its shares.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Transurban Group. The Motley Fool Australia has no position in any of the stocks mentioned. 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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