Analysts rate these ASX 200 dividend shares as buys

Analysts are bullish on these dividend shares….
The post Analysts rate these ASX 200 dividend shares as buys appeared first on The Motley Fool Australia. –

If you’re looking to beat low interest rates with some dividend shares, then you may want to look at the ones listed below.

Here’s why these ASX 200 dividend shares are rated as buys:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is BHP.  This mining giant could be a top option for income investors thanks to the diversity of its world class operations and the strong free cash flow they generate.

Morgans is a fan of the company and has an add rating and $45.70 price target on its shares.

It recently commented: “We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.”

As for dividends, the broker has pencilled in fully franked dividends of $3.42 per share in FY 2022 and $2.45 in FY 2023. Based on the current BHP share price of $41.68, this will mean yields of 8.2% and 5.9%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX 200 dividend share for income investors to consider is NAB. The team at Bell Potter is positive on the banking giant and has a buy rating and $32.00 price target on its shares.

The broker said: “NAB is now the second largest major bank by market capitalisation. The payout ratio is now close to its maximum, being 65-75% of cash earnings. ROE was 10.7% in FY21 and still climbing, while CET1 ratio was 13% and ahead of the 10.75-11.25% target range. The bank still intends to return surplus capital, being 40% complete. The acquisition of 86 400 plus the proposed acquisition of Citigroup’s Australian consumer business will see the bank achieve scale in digital and consumer banking offerings.”

The broker is forecasting dividends per share of 132.5 cents in FY 2022 and then 134.5 cents in FY 2023. Based on the current NAB share price of $29.32, this equates to fully franked yields of 4.5% and 4.6%, respectively.

The post Analysts rate these ASX 200 dividend shares as buys appeared first on The Motley Fool Australia.

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More reading

5 things to watch on the ASX 200 on Thursday

Why is the NAB (ASX:NAB) share price having such a merry December?

Why is the BHP (ASX:BHP) share price having such a good run in December?

Bell Potter names 2 ASX 200 blue chip shares to buy in 2022

These are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

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