Last week, I looked at the top ASX 200 growth stocks that Macquarie Group Ltd (ASX: MQG) has in its growth portfolio. You can read about those shares here.
The investment bank also has an income version that it notes represents a starting point to form a portfolio with income characteristics.
The broker also highlights that this portfolio is created with a focus on a higher degree of earnings certainty, backed by strong cash flows, and highly tax effective dividend income.
Its top five ASX 200 income portfolio holdings right now are listed below:
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Westpac Banking Corp (ASX: WBC)
Australia's oldest bank is the biggest holding in Macquarie's model income portfolio. This is despite the broker having an underperform rating on Westpac and all the big four banks. Westpac currently has a 9% portfolio weighting in the portfolio.
In terms of valuation, the broker has a $26.00 price target on its shares. As for income, it is forecasting a fully franked dividend yield of 5.5% in FY 2024.
Suncorp Group Ltd (ASX: SUN)
Next in line is insurance giant Suncorp which has an 8.9% weighting in the model portfolio. Macquarie has an outperform rating and $17.00 price target on its shares.
And for that all-important income, the broker expects Suncorp's shares to provide investors with a fully franked 4.4% dividend yield in FY 2024.
Telstra Group Ltd (ASX: TLS)
This telco giant is the third largest holding in the broker's model income portfolio with a weighting of 8.1%. Unlike with the banks, its analysts expect a generous dividend yield and major upside potential from this ASX 200 stock.
Macquarie currently has an outperform rating and $4.38 price target on its shares. This suggests that upside of 14% is possible for investors over the next 12 months.
In addition, with the broker forecasting a fully franked dividend yield of 4.8% in FY 2024, the total potential return stretches to approximately 19%.
National Australia Bank Ltd (ASX: NAB)
The next big four bank that is included in the model portfolio is NAB with a portfolio weighting of 7.6%. Though, as I mentioned above, Macquarie has it in its portfolio despite having an underperform rating and $32.50 price target on its shares.
As for income, the broker is forecasting a fully franked 4.8% dividend yield from the ASX 200 stock in FY 2024.
ANZ Group Holdings Ltd (ASX: ANZ)
Rounding out the top five is fellow big four bank ANZ with a weighting of 7.4%. Macquarie has an underperform rating and $27.00 price target on its shares.
In respect to dividends, the broker expects a partially franked dividend yield of 5.5% from its shares in FY 2024.
