Experts name the blue chip ASX 200 dividend shares to buy now

If you’re looking for dividend shares to buy, then you may want to look at the two listed below.

Here’s why experts rate these ASX 200 dividend shares highly:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share that experts rate as a buy is supermarket operator Coles.

It released its first quarter update at the end of last month and revealed a 2.1% increase in like for like sales. This was achieved despite cycling heightened COVID-19 related sales in the prior corresponding period and customers returning to dining out at cafes and restaurants.

This update went down well with the team at Citi. In response to its release, the broker retained its buy rating with an $18.90 price target.

As for dividends, Citi is now expecting a 72 cents per share dividend in FY 2023 and a 78 cents per share dividend in FY 2024. Based on the current Coles share price of $16.63, this will mean yields of 4.3% and 4.7%, respectively, for investors.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share that could be in the buy zone is Coles’ former parent Wesfarmers.

While the conglomerate may have divested Coles, it still owns a high quality portfolio of businesses across a range of industries.

Morgans is very positive on the company in the current environment. This is due to its belief that the company’s retail offering is well-placed to navigate the tough retail environment due to its value offering. The broker highlights that “Kmart is well-placed to benefit with the average price of an item at around $6-7.”

The broker expects this to support fully franked dividends per share of $1.82 in FY 2023 and $1.89 in FY 2024. Based on the current Wesfarmers share price of $46.82, this will mean yields of 3.9% and 4%, respectively.

Morgans has an add rating and $58.40 price target on its shares.

The post Experts name the blue chip ASX 200 dividend shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Are ASX share investors getting their mojo back?
• Top ASX dividend shares to buy in November 2022
• Why Wesfarmers shares could be a dirt-cheap buy right now
• Worried about your income in retirement? Take a look at these 3 ASX 200 dividend shares
• 4 ‘fantastic long-term’ ASX shares to put on your watchlist: fund manager

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 positions in and has recommended COLESGROUP DEF SET and Wesfarmers Limited. 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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