Insights

2 ASX 200 dividend shares rated as buys

These dividend shares could offer investors attractive yields…
The post 2 ASX 200 dividend shares rated as buys appeared first on The Motley Fool Australia. –

Are you looking to add some dividend shares to your portfolio? Then take a look at the buy-rated ones listed below.

Here’s why they could be top options for income investors this week:

Fortescue Metals Group Limited (ASX: FMG)

The first ASX dividend share to look at is Fortescue. It is one of the world’s leading iron ore producers with high quality operations in the Pilbara region of Western Australia.

The mining giant is currently benefiting greatly from sky high prices that are being commanded for the steel making ingredient. For example, at present, the spot iron ore price is trading at ~US$218 a tonne, which compares very favourably to the company’s cash costs of US$13.50 to US$14.00 per wet metric tonne.

And even though Fortescue’s lower grade ore doesn’t command as high a price, it is still generating material free cash flow right now. And given management’s track record of returning funds to shareholders, this bodes well for dividends in the near term.

Macquarie is positive on the company and is forecasting big dividends in the near term. It expects Fortescue to pay dividends of $3.45 per share in FY 2021 and then $2.45 per share in FY 2022. Based on the latest Fortescue share price of $23.63, this will mean fully franked yields of 14.6% and 10.4%, respectively.

Macquarie has an outperform rating and $27.00 price target on the miner’s shares.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share to look at is Westpac. After a few tough years, Australia’s oldest bank looks well-placed for a return to growth. This is thanks to improving trading conditions, the simplification of its business, a booming housing market, and cost cutting.

In respect to the latter, Westpac is aiming to reduce its costs down to $8 billion from $12.7 billion by 2024. If it can combine this with top line growth, then it will bode very well for earnings and dividend growth over the next three years.

Analysts at Morgan Stanley are positive on Westpac and have recently retained their buy rating and $29.20 price target on the company’s shares. The broker is also forecasting fully franked dividends per share of $1.18 and $1.25 over the next two years.

Based on the latest Westpac share price of $25.65, this will mean yields of 4.6% and 4.9%, respectively.

The post 2 ASX 200 dividend shares rated as buys appeared first on The Motley Fool Australia.

These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

Returns As of 15th February 2021

More reading

Westpac (ASX:WBC) share price slides despite asset sale update
The Calix (ASX:CXL) share price is rising 5% today. Here’s why
Is your money safe in Commonwealth Bank (ASX:CBA) shares right now?
Is the Westpac (ASX:WBC) share price a buy?
Why this expert thinks commodities are about to rally again

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!