Looking for an income boost? Then check out the three ASX 200 income stocks in this article.
The team at Goldman Sachs currently has buy ratings on all these stocks and is forecasting attractive dividend yields from them.
Here's why the broker is bullish on these names:
Challenger Ltd (ASX: CGF)
The first ASX 200 income stock that Goldman Sachs thinks is a buy is Challenger. It is an investment management company focused on annuities.
Goldman likes Challenger due to its "exposure to the growing superannuation market." In addition, the broker highlights that "higher yields should drive a favorable sales environment for retail annuities."
Its analysts expect this to allow the company to pay fully franked dividends of 26 cents per share in FY 2024 and 27 cents per share in FY 2025. Based on the current Challenger share price of $6.48, this will mean dividend yields of 4% and 4.15%, respectively.
Goldman has a buy rating and $7.50 price target on its shares.
Endeavour Group Ltd (ASX: EDV)
Another ASX 200 income stock that Goldman Sachs is tipping as a buy is Endeavour Group.
It is the leading player in the Australian alcohol retail market and the owner of store brands such as Dan Murphy's and BWS. In addition, it is the owner of ALH Hotels, which has over 350 licensed venues in Australian capital cities and regional centres.
Goldman Sachs likes Endeavour's market leadership position and the defensive nature of the alcohol retail market.
The broker expects this to support fully franked dividends of 21 cents per share in FY 2024 and then 22 cents per share in FY 2025. Based on the current Endeavour share price of $5.30, this will mean dividend yields of 4% and 4.15%, respectively.
Goldman has a buy rating and $6.50 price target on its shares.
NIB Holdings Limited (ASX: NHF)
A final ASX 200 income stock that could be a buy according to Goldman Sachs is NIB. It is of course one of the biggest players in private health insurance.
Goldman is feeling bullish on NIB because it "offers defensive exposure to the private health insurance sector which is experiencing favourable operating trends."
The broker believes this will underpin fully franked dividends per share of 31 cents in FY 2024 and FY 2025. Based on the current NIB share price of $6.94, this would mean 4.5% dividend yields.
Goldman currently has a buy rating and $8.10 price target on its shares.
