Buy Woolworths and these ASX 200 dividend shares

Analysts think that income investors should be buying these stocks.

If you're looking for ASX 200 dividend shares to buy for your income portfolio, then read on.

Listed below are three buy-rated options from very different sides of the market. Here's what analysts are forecasting from them in the near term:

Middle age caucasian man smiling confident drinking coffee at home.

Image source: Getty Images

APA Group (ASX: APA)

The team at Macquarie continues to rate APA Group as an ASX 200 dividend share to buy. It is an energy infrastructure company that owns, manages, and operates a diverse portfolio of gas, electricity, solar and wind assets.

These are very defensive businesses and generate a reliable and growing source of income for APA Group each year. You only need to look at the company's dividend history to see this. It is currently on track to increase its dividend for 20 years in a row.

Macquarie believes that the company will deliver on this. Its analysts are forecasting APA Group to increase its dividend to 56 cents per share in FY 2024 and then 57.5 cents per share in FY 2025. Based on the current APA Group share price of $8.03, this equates to 7% and 7.15% dividend yields, respectively.

The broker currently has an outperform rating and $9.40 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Over at Goldman Sachs, its analysts think that this telco giant could be an ASX 200 dividend share to buy.

The broker was very pleased with the company's recent decision to increase mobile prices by 2% to 4%. Particularly given that these increases "highlight: (1) mobile market rationality remains (particularly when combined with the recent Optus increase); (2) TLS mobile earnings growth remains strong, driven by subscribers and ARPU."

Goldman expects this to support fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.88, this equates to yields of 4.6% and 4.9%, respectively.

The broker currently has a buy rating and $4.30 price target on Telstra's shares.

Woolworths Limited (ASX: WOW)

Finally, analysts at Goldman Sachs also think that supermarket giant Woolworths could be an ASX 200 dividend share to buy.

The broker believes that Woolworths' shares are undervalued at current levels. Particularly given its strong market position and loyal customer base. It believes this means Woolworths "has strong ability to drive market share gains via its omni-channel advantage, as well as its ability to pass through any cost inflation to protect its margins, beyond market expectations."

In respect to dividends, the broker is forecasting fully franked dividends per share of $1.07 in FY 2024 and $1.13 in FY 2025. Based on its current share price of $35.15, this equates to dividend yields of 3% and 3.2%, respectively.

Goldman has a buy rating and $40.20 price target on its shares.

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 Apa Group, Macquarie Group, and Telstra Group. 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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