2 ASX 200 dividend shares analysts rate as buys

If you’re looking for ASX 200 dividend shares to buy, then you may want to check out the two listed below.

Both have recently been named as buys by analysts. Here’s why they rate them highly this month:

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

The first ASX 200 dividend share that analysts are positive on is ANZ Bank.

The big four bank was recently tipped as a buy by analysts at Citi. The broker currently has a buy rating and $29.00 price target on the bank’s shares

Citi appears to believe the acquisition of the banking operations of Suncorp Group Ltd (ASX: SUN) could be a boost if everything goes to plan.

If integrated successfully, we believe the deal looks to represent fair value, with the acquisition PE of 13.8x offset by substantial cost synergies (~35% of SUN Bank cost base), funding cost benefits (due to ANZ’s AA rating) and lower capital intensity (a move to AIRB accreditation) over time.

As for dividends, the broker is forecasting fully franked dividends of $1.42 per share in FY 2022 and $1.65 per share in FY 2023. Based on the current ANZ share price of $24.02, this will mean yields of 5.9% and 6.9%, respectively.

BHP Group Ltd (ASX: BHP)

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

The Big Australian could be a top option for income investors thanks to the high levels of free cash flow it is generating from its world class and diverse operations.

Morgans certainly thinks this is the case. It has an add rating and $48.40 price target on its shares.

The broker 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.

In respect to dividends, the broker is expecting a $3.97 per share dividend in FY 2022 and then a $3.88 per share dividend in FY 2023. Based on the latest BHP share price of $38.83, this equates to massive fully franked yields of 10.2% and 10%, respectively.

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

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More reading

• Looking to buy BHP shares? Here’s what to watch when the mining giant reports this week
• Here are 3 ASX blue-chip shares reporting this week
• Could the ANZ share price really offer more than 20% upside?
• Down 20% in 6 months, what’s next for the BHP share price?
• 3 rising ASX shares to buy that have passed the bottom: expert

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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