Goldman Sachs rates these ASX 200 dividend stocks as buys

Here's why the broker is feeling bullish about these giants.

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Are you looking for attractive dividend yields? Then look no further!

Goldman Sachs has named two ASX 200 dividend stocks with attractive yields to buy now.

Here's what its analysts are saying about these shares right now:

BHP Group Ltd (ASX: BHP)

If you don't mind investing in the mining sector, then BHP could be an ASX 200 dividend stock to buy.

That's because Goldman Sachs is expecting this mining giant to provide investors with attractive dividend yields in the near term. This is thanks to its belief that "the global seaborne iron ore market [will] register a ~40Mt deficit in 2023" and keep prices high.

For example, the broker is forecasting fully franked dividends of US$1.42 (A$2.16) per share in FY 2024 and US$1.21(A$1.84) per share in FY 2025. Based on the current BHP share price of $47.40, this will mean dividend yields of 4.55% and 3.9%, respectively.

Goldman also sees potential for BHP shares to rise from current levels. It currently has a buy rating and a $49.90 price target on them.

Endeavour Group Ltd (ASX: EDV)

Another ASX 200 dividend stock that Goldman is recommending as a buy right now is drinks giant Endeavour. The broker is a fan of the company due to its industry-leading position, attractive valuation, and positive growth outlook.

It notes that its shares trade "at an attractive 16.9x FY24 P/E vs 5.2% EPS 23-26e CAGR for a staple with clear market leading position."

Goldman Sachs currently has a buy rating and a $6.40 price target on Endeavour's shares.

As for income, the broker is expecting fully franked dividends per share of 21 cents in FY 2023 and 23 cents in FY 2024. Based on the current Endeavour share price of $4.95, this will mean dividend yields of 4.25% and 4.65%, respectively.

Motley Fool contributor James Mickleboro has positions in Endeavour Group. 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 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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