If you’re looking for ASX 200 dividend shares to buy, then the two listed below could be worth considering. After all, these shares are among the best ideas list for one of Australia’s top brokers, Morgans.
Here’s what you need to know about these dividend shares:
Morgans is a fan of this conglomerate due to its belief that it owns some of the best retail brands Australia has to offer. The broker also feels recent share price weakness has created a buying opportunity and has put an add rating and $58.50 price target on its shares.
As for dividends, Morgans is forecasting fully franked dividends per share of $1.62 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $50.64, this will mean yields of 3.2% and 3.6%, respectively.
The broker commented: “WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart, Target and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While Covid-related staff shortages are proving to be a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the recent pullback in the share price as a good entry point for longer term investors.”
Westpac Banking Corp (ASX: WBC)
The team at Morgans also rates this banking giant highly and has an add rating and $29.50 price target on its shares. The broker believes Westpac can achieve its cost cutting targets and is optimistic on its margin outlook.
In respect to dividends, the Morgans has pencilled in fully franked dividends per share of $1.19 in FY 2022 and $1.60 in FY 2023. Based on the latest Westpac share price of $23.68, this will mean yields of 5% and 6.75%, respectively.
Its analysts commented: “WBC is our preferred major bank. We believe WBC offers the most compelling valuation of the major banks. In terms of quality of overall risk profile, we believe WBC is a close second to CBA. On credit risk, we believe WBC is positioned relatively defensively due to its loan book being more skewed to Australian home lending.”
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