Analysts name 2 ASX 200 dividend giants to buy in March


If you’re wanting to add some ASX 200 dividend shares to your portfolio, then it could be worth considering the two giants listed below.

Here’s why analysts think they could be top options for income investors in March:

Commonwealth Bank of Australia (ASX: CBA)

The first ASX 200 dividend share to consider is Australia’s largest bank, Commonwealth Bank. It could be a top option due to its leadership position in the sector and the improving outlook for interest rates in Australia.

Bell Potter certainly thinks it would be a good option. And while its shares are trading at a premium to the rest of the big four, its analysts believe they deserve to and have put a buy rating with a $108.00 price target on them.

The broker commented: “Despite the misgivings of the market and especially COVID-19’s Omicron strain, CBA sees FY22 as a strong year. The unemployment (and underemployment rate) are the lowest since 2008 and Australian household accumulated savings are stronger than ever (likewise the rate at which wage growth in anticipated). Inflation is likely to increase in due course (and that’s a good thing for all banks) while non-mining investment including infrastructure continue to hold up reasonably well. The bank has again bounced back from its lows and is on its way back to its usual top line growth potential.”

As for dividends, the broker is forecasting fully franked dividends per share of $3.87 in FY 2022 and $4.07 in FY 2023. Based on the current CBA share price of $94.60, this will mean yields of 4.1% and 4.3% respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 dividend share to look at is telco giant, Telstra. It could be a top option due to its ever-improving outlook which is being underpinned by the successful execution of its transformative T22 strategy and the impending T25 strategy.

The latter is aiming to drive strong earnings per share growth in the coming years, which could bode well for dividends.

Morgans is very positive on the company and has an add rating and $4.55 price target on them. It feels the market is undervaluing its shares and expects attractive yields for the foreseeable future.

The broker commented: “The SOTP [sum of the part] for TLS is worth more than the current share price (and steps to release this value are underway; albeit timing is unclear).”

In respect to dividends, Morgans continues to expect fully franked dividends per share of 16 cents for FY 2022 and FY 2023. Based on the current Telstra share price of $3.92, this implies yields of 4% for investors.

Source: Read More

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