Brokers name 2 ASX 200 dividend shares to buy now

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their ASX shares on the laptop in front of them

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their ASX shares on the laptop in front of them

If you’re looking to combat rising inflation with some dividend shares, then the two listed below could be worth considering.

Analysts have recently named these ASX 200 dividend shares as buys. Here’s what you need to know about them:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share to look at is mining giant BHP.

It has been tipped as a top option for investors due to the high levels of free cash flows it is generating from its portfolio of world class operations. This is being underpinned by favourable commodity prices and bodes well for dividend payments in the near term.

For example, Citi recently upgraded the company’s shares to a buy rating with a $56.00 price target. While it wasn’t overly impressed with BHP’s production during the recent quarter, it commented that there is “too much cash flow to ignore.”

Citi is expecting this cash flow to support fully franked dividends per share of ~$4.86 in FY 2022 and then ~$4.89 in FY 2023. Based on the current BHP share price of $44.95, this implies yields of 10.8% and 10.9%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX 200 dividend share that analysts rate as a buy is banking giant NAB.

For example, the team at Goldman Sachs recently retained their conviction buy rating on the bank’s shares with a $34.17 price target.

Goldman Sachs likes NAB due to its balance sheet mix, which the broker feels provides the best exposure to the domestic system growth. It also highlights that NAB’s franchise is performing strongly, growing at or above system growth in most segments, and expects this to continue.

Its analysts are forecasting attractive dividends in the near term. They have pencilled in fully franked dividends of $1.52 per share in FY 2022 and $1.65 per share in FY 2023. Based on the current NAB share price of $30.82, this implies yields of 4.9% and 5.35%, respectively.

The post Brokers name 2 ASX 200 dividend shares to buy now appeared first on The Motley Fool Australia.

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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 Scott Phillips.

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