Analysts say these strong ASX 200 dividend shares are buys

There's a reason why analysts are feeling positive about these shares.

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There are a lot of ASX 200 dividend shares to choose from on the Australian share market. So many it can be hard to decide which ones to buy.

But don't worry if you're paralysed by choice. That's because to narrow things down, I have picked out two that analysts rate as buys.

Here's what they are recommending:

Endeavour Group Ltd (ASX: EDV)

The first ASX 200 dividend share to look at is Endeavour. It is the drinks giant behind the BWS and Dan Murphy's brands, as well as a large collection of hotels.

Goldman Sachs is a fan of the company. It likes its industry-leading position and attractive valuation. Goldman highlights 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."

As for dividends, Goldman is forecasting fully franked dividends of approximately 21 cents per share in FY 2024 and 23 cents per share in FY 2025. Based on the current Endeavour share price of $5.09, this equates to yields of 4.1% and 4.5%, respectively.

Goldman has a buy rating and a $6.40 price target on the company's shares.

Transurban Group (ASX: TCL)

Another ASX 200 dividend share that gets the thumbs up from analysts is Transurban. It has a portfolio of urban toll roads across Australia and North America.

Citi likes the company and believes it is well-placed thanks to inflation-linked price increases and its defensive qualities. It highlights the company's "strong EBITDA growth outlook (c.12% CAGR between Fy24-FY26)."

The broker expects this to underpin dividends per share of 63 cents in FY 2024 and 65 cents in FY 2025. Based on the current Transurban share price of $13.76, this will mean yields of 4.6% and 4.7%, respectively.

Citi 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 positions in Endeavour Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and 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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