The Australian share market traditionally provides investors with an average dividend yield of 4%.
But income investors don't have to settle for that. Not when there are ASX 200 dividend shares like the three listed below.
Here's what you need to know about them:
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Eagers Automotive Ltd (ASX: APE)
The first ASX 200 dividend share that is rated as a buy is Eagers Automotive.
It is a leading auto retailer with over 250 locations across Australia and New Zealand. This portfolio covers all 19 of the top 20 best-selling car brands in Australia, as well as 9 of the top 10 luxury brands.
Bell Potter is positive on the company and believes it could outperform consensus expectations with its second-half performance in FY 2024.
It expects this to underpin fully franked dividends of 66.5 cents per share in FY 2024 and then 73 cents per share in FY 2025. Based on its current share price of $11.67, this represents dividend yields of 5.7% and 6.25%, respectively.
Bell Potter currently has a buy rating and $13.00 price target on its shares.
Harvey Norman Holdings Limited (ASX: HVN)
Bell Potter is also feeling positive about retail giant Harvey Norman and sees it as an ASX 200 dividend share to buy.
The broker likes the retailer due to its exposure to the artificial intelligence (AI) megatrend. It believes Harvey Norman stands to benefit greatly from an AI driven major upgrade/replacement cycle of devices purchased during the COVID-19 pandemic.
Bell Potter expects this to support the payment of fully franked dividends of 25.9 cents per share in FY 2025 and then 28.5 cents per share in FY 2026. Based on the current Harvey Norman share price of $4.71, this equates to 5.5% and 6% dividend yields, respectively.
Bell Potter currently has a buy rating and $5.80 price target on its shares.
IPH Ltd (ASX: IPH)
Finally, Goldman Sachs thinks that IPH is an ASX 200 dividend share to buy. It is an intellectual property (IP) services company with operations across the world.
The broker is positive on IPH due to its belief that it "is well-placed to deliver consistent and defensive earnings with modest overall organic growth."
And after increasing its dividend every year for the past decade, Goldman expects this run to continue. It is forecasting fully franked dividends of 36 cents per share in FY 2025 and then 39 cents per share in FY 2026. Based on the current IPH share price of $4.95, this represents yields of 7.3% and 7.9%, respectively.
Goldman Sachs currently has a buy rating and $7.50 price target on its shares.
