Brokers have been busy running the rule over a number of ASX 200 dividend shares in recent weeks.
Two that have come out with buy ratings are listed below. Here's why brokers think they could be great options for income investors right now:
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Elders Ltd (ASX: ELD)
The first ASX 200 dividend share that has been given the thumbs up by analysts is Elders.
It is a leading Australian agribusiness company offering tailored advice and specialist knowledge across a range of products and services. This includes farm supplies, agronomy, livestock, wool, grain, finance, insurance, and real estate.
Bell Potter is a fan of the company and has a buy rating and $9.45 price target on its shares.
The broker was pleased with the announcement of a recent acquisition to acquire Delta Agribusiness, particularly given its opportunity in crop protection. It explains:
Our Buy rating is unchanged. The acquisition of Delta looks a relatively low-risk stepout with upside to the synergy target based on the 15% ROIC target (i.e ~$70m EBIT vs. 3yr target of ~$55m) largely through increased backward integration in crop protection. Trading at ~7.4x PF25e EBITDA, ELD trades at a reasonable discount to its through-the-cycle EBITDA multiple of 8.5x.
As for income, Bell Potter expects this to underpin the payment of fully franked dividends of 41 cents per share in FY 2025 and then 43 cents per share in FY 2026. Based on the current Elders share price of $7.19, this will mean dividend yields of 5.7% and 6%, respectively.
Super Retail Group Ltd (ASX: SUL)
Over at Goldman Sachs, its analysts think that Super Retail could be an ASX 200 dividend share to buy this week.
Super Retail is the owner of popular store brands BCF, Supercheap Auto, Macpac, and Rebel.
Goldman Sachs thinks that its shares are undervalued relatively to its positive earnings growth outlook through to FY 2027. The broker has put a buy rating and $17.60 price target on its shares. Commenting on its buy recommendation, Goldman said:
While we believe that the nature of SUL's categories in Rebel Sports, Camping and Outdoor Wear is more discretionary compared to Electronics, Tech and Home, SUL is one of the few retailers in Australia that has both a space and sales productivity lever that we expect the company to be able to pull. It is trading on 14x FY25 P/E vs 4% FY24-27e EPS CAGR, a better value within our Discretionary Retail coverage vs. peers, in our opinion.
In respect to dividends, its analysts are forecasting Super Retail to pay fully franked dividends per share of 67 cents in FY 2025 and then 73 cents in FY 2026. Based on its current share price of $14.76, this will mean yields of 4.5% and 4.9%, respectively.
