Goldman Sachs has been busy looking over a number of ASX 200 dividend stocks in recent days.
Three stocks that have been given a big thumbs up are listed below. Here's why the broker believes income investors should be buying them today:
NIB Holdings Limited (ASX: NHF)
The first ASX dividend stock that could be a buy according to Goldman Sachs is private health insurer NIB.
The broker is feeling positive because NIB "offers defensive exposure to the private health insurance sector which is experiencing favourable operating trends."
Its analysts expect this to support the payment of fully franked dividends per share of 31 cents in FY 2024 and FY 2025. Based on the current NIB share price of $7.52, this would mean 4.1% dividend yields.
Goldman currently has a buy rating and $8.10 price target on NIB's shares.
QBE Insurance Group Ltd (ASX: QBE)
Goldman Sachs is also feeling positive about this general insurance giant and has named it as an ASX 200 dividend stock to buy.
The broker likes QBE because it "has the strongest exposure to the commercial rate cycle" and that its "North America [business is] on a pathway to improved profitability."
Goldman believes this will underpin dividends per share of 61 US cents (93.8 Australian cents) in FY 2024 and 63 US cents (96.9 Australian cents) in FY 2025. Based on the current QBE share price of $17.91, this equates to dividend yields of 5.2% and 5.4%, respectively.
The broker currently has a buy rating and $21.00 price target on its shares.
Rio Tinto Ltd (ASX: RIO)
A third ASX 200 dividend stock that Goldman Sachs is tipping as a buy is mining giant Rio Tinto.
In response to the company's half year result this week, its analysts have reiterated their buy rating. The broker believes Rio Tinto's shares have a "compelling relative valuation: trading at c. ~0.8x NAV (A$147/sh) vs. peers (BHP ~0.9x NAV and FMG ~1.2x NAV) and c. ~5x NTM EBITDA at GSe base case, below the historical average of ~6-7x."
In addition, the broker continues to forecast good dividend yields from the miner's shares. It is expecting fully franked dividends of US$4.24 (A$6.50) per share in FY 2024 and then US$4.45 (A$6.84) per share in FY 2025. Based on its current share price of $119.70, this equates to dividend yields of 5.4% and 5.7%, respectively.
Goldman has a buy rating and $136.60 price target on its shares.
