The good news for income investors is that there are plenty of ASX 200 dividend shares for them to choose from on the Australian share market.
But which ones could be in the buy zone right now?
Let's take a look at two that analysts say are top picks for income investors this week. They are as follows:
Harvey Norman Holdings Limited (ASX: HVN)
Harvey Norman could be an ASX 200 dividend share to buy according to Bell Potter. It is one of Australia's largest household and consumer goods retailers with a network of company-owned and franchised stores across the nation and internationally.
Bell Potter likes the company due to its attractive valuation and positive outlook. The latter is being underpinned by its exposure to the artificial intelligence (AI) megatrend. It explains:
We see HVN trading attractively at ~15x on a 1-year forward basis with multiple catalysts near/midterm such as improving sales trends in key markets assisted by a sizable upside from the AI driven upgrade cycle/replacement & spend shift to tech, gaining penetration in targeted regions in the UK in addition to the incremental earnings opportunities in its Property division as Australia's largest single owner with a $4.4b global portfolio.
In respect to income, Bell Potter is forecasting fully franked dividends of 25.4 cents per share in FY 2025 and then 28.1 cents per share in FY 2026. Based on the current Harvey Norman share price of $5.04, this will mean dividend yields of 5% and 5.6%, respectively.
Bell Potter has a buy rating and $6.00 price target on its shares.
Steadfast Group Ltd (ASX: SDF)
Goldman Sachs thinks that Steadfast could be an ASX 200 dividend share to buy now. It operates a group of insurance brokers that provide commercial insurance solutions for small to medium sized businesses. Steadfast also operates the SDF network of brokers.
A recent note reveals that Goldman Sachs is positive on the company due partly to its strong position in the market, as well as the favourable operating environment. It explains:
We like SDF because of the industry structure favouring insurance brokers. 1) Premium rate environment remains supportive of organic growth trends (albeit moderating); 2) Little to no exposure to underwriting risk with revenues largely dependent on premiums written; 3) An opportunity to acquire EPS accretively with unlisted acquisitions at multiples accretive to earnings (including offshore); 4) A defensive business model which is relatively resilient to economic activity; 5) Valuation appeal compared to global peers.
As for dividends, Goldman is forecasting fully franked payouts per share of 20 cents in FY 2025 and then 22 cents in FY 2026. Based on its current share price of $5.77, this would mean dividend yields of 3.5% and 3.8%, respectively.
Goldman currently has a buy rating and $6.50 price target on its shares.
