Income investors that are on the lookout for some ASX 200 dividend shares to buy might want to check out the two named below.
That's because brokers have recently put buy rating on their shares. Here's what you need to know:
Suncorp Group Ltd (ASX: SUN)
Goldman Sachs believes that Suncorp could be an ASX 200 dividend share to buy. It has a buy rating and a $15.13 price target on the insurance giant's shares.
The broker believes that Suncorp is well-positioned for growth in the current environment. It explained:
We are favourably disposed to Suncorp, noting in large part the tailwinds that exist in the general insurance market – i.e., very strong renewal premium rate increases and the benefit of higher investment yields. We think the strong rate momentum that SUN is getting should likely offset volume pressures as they optimise their risk exposures in certain portfolios such as home but also likely policy lapses / buy downs.
As for dividends, the broker is forecasting fully franked dividends per share of 75 cents in FY 2024 and 80 cents in FY 2025. Based on the current Suncorp share price of $13.38, this will mean yields of 5.6% and 6%, respectively.
Super Retail Group Ltd (ASX: SUL)
Morgans says that Super Retail could be an ASX 200 dividend share to buy. It has a buy rating and a $15 price target on the Rebel and Super Cheap Auto owner's shares.
Its analysts are feeling positive about the company's outlook following a stronger-than-expected margin performance in FY 2023. It said:
SUL reported positive growth in sales and earnings in FY23, despite cycling elevated comps. Better than expected margins meant NPAT was 9% higher than our estimates. SUL declared a 25c special dividend, and at this stage we think it will declare another one this time next year. Our NPAT forecasts rise by 1% in both FY24 and FY25.
As for income, the broker is forecasting fully franked dividends per share of 89 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $13.84, this will mean generous yields of 6.4% and 5.3%, respectively.
