Fortunately for income investors, the Australian share market is home to a large number of ASX 200 dividend stocks.
But which ones are buys? To narrow things down, let's take a look at three blue chip options that brokers currently rate as buys. They are as follows:
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Coles Group Ltd (ASX: COL)
The team at Macquarie thinks that Coles could be a top pick for income investors.
It is of course one of Australia's big two supermarket operators. It notes that it has an extensive footprint of over 1,800 retail outlets nationally and welcomes millions of customers through its doors and digital platforms every week.
Macquarie is positive on the company's outlook and believes it is well-placed to grow its dividend in the coming years. It is forecasting fully franked dividends per share of 67 cents in FY 2025 and then 78 cents in FY 2026. Based on its current share price of $21.98, this would mean yields of 3% and 3.5%, respectively.
Macquarie has an outperform rating and $23.10 price target on its shares.
Telstra Group Ltd (ASX: TLS)
Another blue chip ASX 200 dividend stock that analysts rate as a buy is Telstra. It is of course Australia's largest telco operator.
The team at Macquarie is also very positive on Telstra. Particularly given the release of its new Connected Future 30 strategy this month. In response, the broker said: "Despite execution risks from software-defined networking, ROIC growth and focus on the core competitive advantage in network and connectivity signals operating leverage and momentum."
The broker now expects Telstra to be in a position to pay fully franked dividends per share of 19.9 cents in FY 2025 and then 22 cents in FY 2026. Based on its current share price of $4.90, this equates to dividend yields of 4.1% and 4.5%, respectively.
Macquarie has an outperform rating and $5.28 price target on the telco's shares.
Treasury Wine Estates Ltd (ASX: TWE)
A final blue chip ASX 200 dividend stock that could be a buy is Treasury Wine.
It is the wine giant behind brands such as Penfolds, 19 Crimes, Wolf Blass, Blossom Hill, Seppelt, and Beringer.
Morgans remains positive on the company despite recent weakness from its US operations. It highlights that "while not without risk given industry and macro headwinds, TWE's trading multiples look far too cheap (FY25 PE of only 14.2x) and we maintain a BUY rating."
In addition, the broker sees potential for some attractive yields in the near term. It is forecasting partially franked dividends of 39.5 cents in FY 2025 and then 45 cents in FY 2026. Based on its current share price of $8.08, this represents dividend yields of 4.9% and 5.6%, respectively.
Morgans has a buy rating and $11.06 price target on its shares.
