Income investors that are looking for high-quality ASX 200 dividend shares to buy in March might want to look at the two in this article.
That's because analysts at Goldman Sachs rate them both as buys and are forecasting attractive dividend yields and potential capital appreciation.
Let's take a closer look at why they are bullish on them:
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Telstra Group Ltd (ASX: TLS)
Goldman Sachs believes that Telstra could be a top ASX 200 dividend share to buy this month.
As Australia's leading telecommunications company, Telstra serves 22.5 million retail mobile customers and 3.4 million broadband customers. This dominant position gives it a strong competitive edge and steady cash flow, making it an attractive choice for income investors.
Goldman highlights Telstra's earnings stability and dividend growth potential, particularly in the near term. The broker explained:
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.
In addition, one key opportunity that Goldman sees is monetising Telstra's recurring NBN payment stream, which could be worth between $14.5 billion and $17.9 billion. The broker also pointed out that while Telstra's valuation may seem stretched, adjusting for its these unique NBN payments makes it look far more attractive.
In terms of income, Goldman is forecasting fully franked dividends of 19 cents per share in FY 2025 and then 20 cents per share in FY 2026. Based on the current Telstra share price of $4.14, this equates to dividend yields of 4.6% and 4.8%, respectively.
Goldman has a buy rating on Telstra's shares with target price of $4.50.
Endeavour Group Ltd (ASX: EDV)
Another ASX 200 dividend share that could be a top buy this month is Endeavour Group.
It owns Australia's largest retail drinks network, operating Dan Murphy's and BWS stores, as well as the country's largest portfolio of licensed hotels with hundreds of venues nationwide. This diversified business model provides a steady revenue stream and resilience during economic fluctuations.
Goldman Sachs is particularly positive on Endeavour, seeing the recent share price weakness as a buying opportunity. It stated:
We reiterate Buy on our continued belief in a high-quality retailer gaining share amid a category down-cycle with a resilient growth option in Hotels. Company is trading at FY25 P/E of 17x vs historical average of 22x and WOW 22x, COL 21x.
In respect to income, Endeavour is forecast to pay fully franked dividends of 19 cents per share in FY 2025 and 22 cents per share in FY 2026. With the company's current share price at $4.19, this translates to dividend yields of 4.5% and 5.2%, respectively.
Goldman has a buy rating on Endeavour's shares with a price target of $5.10.
