Brokers say these ASX 200 dividend stocks are buys

These stocks have been named as buys by brokers. Here's what they are expecting from them.

If you have room in your income portfolio for some new additions, then it could be worth checking out the ASX 200 dividend stocks listed below.

Here's why analysts think they are in the buy zone right now:

Woman calculating dividends on calculator and working on a laptop.

Image source: Getty Images

Bapcor Ltd (ASX: BAP)

The team at Macquarie thinks income investors should consider buying this auto parts retailer's shares.

The broker currently has an outperform rating and $6.90 price target on its shares. This suggests potential upside of approximately 11% for investors from current levels.

Macquarie was pleased with Bapcor's performance during the first half, noting that its result was largely in line with its expectations.

Looking ahead, the broker is forecasting the company to pay fully franked dividends of 18.4 cents per share in FY 2024 and then 21.1 cents per share in FY 2025. Based on the current Bapcor share price of $6.23, this implies yields of 3% and 3.4%, respectively.

Rio Tinto Ltd (ASX: RIO)

Another ASX 200 dividend stock that could be a good option for income investors is Rio Tinto.

It is one of the largest miners in the world and the owner of a high-quality portfolio of operations across multiple commodities. In addition, it is working to reduce its carbon footprint, partnering to develop new technologies to decarbonise steel and aluminium production, and creating new products from waste.

The team at Goldman Sachs is feeling very positive on the miner and recently put a buy rating and $138.30 price target on its shares. This implies potential upside of approximately 13.5% for investors.

As for dividends, the broker is expected fully franked dividends per share of US$4.39 (A$6.72) in FY 2024 and then US$4.61 (A$7.06) in FY 2025. Based on the latest Rio Tinto share price of $121.62, this will mean yields of approximately 5.5% and 5.8%, respectively.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Bapcor. 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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