The Australian share market certainly isn't short of options for income investors.
But which ASX 200 dividend shares could be buys?
Let's take a look at two that analysts at Goldman Sachs are tipping as buys. They are as follows:
Telstra Group Ltd (ASX: TLS)
Goldman thinks that Telstra could be an ASX 200 dividend share to buy right now.
The broker is positive on the telco giant due to its key mobile business. Particularly given the recent announcement of prices increases.
But there's also the potential for asset divestments or the monetisation of its NBN payment stream. It explains:
We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn. Although there is some debate around the strategic benefits, we see a strong rationale for monetizing the recurring NBN payment stream, given its inflation-linked, long duration cash flows could be worth $14.5bn to $17.9bn, with no loss of strategic benefit.
As for those all-important dividends, Goldman expects 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 $3.90, this represents dividend yields of 4.6% and 4.9%, respectively.
Goldman has a buy rating and $4.30 price target on its shares.
Worley Ltd (ASX: WOR)
Another ASX 200 dividend share that Goldman Sachs is positive on is Worley.
It describes itself as a global professional services company of energy, chemicals and resources experts. It partners with customers to deliver projects and create value over the life of their assets.
Goldman is particularly positive on the company due to its exposure to the decarbonisation megatrend. It said:
WOR is well positioned to play a role in enabling the transition from fossil fuels to a more sustainable energy mix in the LT, leveraging its experience in providing engineering and maintenance services for complex energy/chemicals works, existing client relationships, and management's stated focus on expanding the company's transition footprint. We expect the energy transition segment to gain increased investor attention as Covid-19 related impacts fade and the company continues to highlight the strong growth potential of the business via increased disclosure. We expect WOR's ST/MT margins to improve with an incrementally positive operating environment. Vs the S&P/ASX 200, WOR is trading broadly in line with market vs a premium in the last 3yr/5yr.
Goldman is forecasting dividends per share of 52 cents in FY 2024 and then 58 cents in FY 2025. Based on its current share price of $14.96, this equates to dividend yields of 3.5% and 3.9%, respectively.
The broker has a buy rating and $17.50 price target on its shares.
