There are plenty of quality ASX 200 dividend shares to choose from on the Australian share market.
But which ones are buys?
Two that have been tipped as best ideas by analysts at Morgans in December are listed below. Here's why they could be worth a look:
QBE Insurance Group Ltd (ASX: QBE)
Morgans thinks that this insurance giant is an ASX 200 dividend share to buy this month.
The broker believes the company is well-positioned for growth thanks to strong rate increases and its cost reductions. The broker 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.
In respect to dividends, Morgans is forecasting dividends per share of 96 cents in FY 2023 and 137 cents in FY 2024. Based on the current QBE share price of $14.46, this will mean yields of 6.6% and 9.5%, respectively.
Morgans has an add rating and a $17.46 price target on its shares.
Wesfarmers Ltd (ASX: WES)
Another ASX 200 dividend share that Morgans rates as a buy is retail conglomerate Wesfarmers.
The broker likes Wesfarmers due partly to the quality of its retail portfolio, which includes Kmart and Bunnings. It also highlights that the company is well-placed in the current environment thanks to its focus on value. It said:
WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. We believe WES's businesses, which have a strong focus on value, remain well-placed for growth and market share gains in a softening macroeconomic environment.
As for income, the broker is forecasting fully franked dividends of $1.91 per share in FY 2024 and then $2.18 per share in FY 2025. Based on the current Wesfarmers share price of $54.33, this implies yields of 3.5% and 4%, respectively.
Morgans has an add rating and a $55.15 price target on Wesfarmers' shares.
