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 February are listed below. Here's why they could be worth a look:
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QBE Insurance Group Ltd (ASX: QBE)
Insurance giant QBE could be an ASX 200 dividend share to buy according to the broker.
Morgans believes that the company is well-placed for earnings and dividend growth thanks to strong rate increases and its cost cutting plans. It 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.
Morgans expects this to support dividends per share of 98.5 cents in FY 2023 and 136 cents in FY 2024. Based on the current QBE share price of $16.64, this will mean yields of 5.9% and 8.2%, respectively.
Morgans has an add rating and $17.56 price target on its shares.
Treasury Wine Estates Ltd (ASX: TWE)
Another ASX 200 dividend share that Morgans rates as a buy is wine giant Treasury Wine.
The broker sees significant value in its shares at the current level. And that's not including the additional value that could be unlocked if its $1.4 billion acquisition of DAOU Vineyards delivers the goods. The broker explains:
The acquisition is in line with TWE's premiumisation and growth strategy and will strengthen a key gap in Treasury Americas (TA) portfolio. Importantly, DAOU has generated solid earnings growth and is a high margin business. It consequently allowed TWE to upgrade its margins targets. While not without risk given the size of this transaction, if TWE delivers on its investment case, there is material upside to our valuation. The key near term share price catalyst is if China removes the tariffs on Australian wine imports.
For now, Morgans expects Treasury Wine to pay fully franked dividends of 37 cents in FY 2024 and 45 cents in FY 2025. Based on its current share price of $11.14, this equates to yields of 3.3% and 4%, respectively.
The broker has an add rating and $14.15 price target on the company's shares.
