Morgans names 2 of the best ASX 200 dividend shares to buy

A group of market analysts sit and stand around their computers in an open-plan office environment. The central figures are deep in thought about Megaport's recent earnings release

A group of market analysts sit and stand around their computers in an open-plan office environment. The central figures are deep in thought about Megaport's recent earnings release

The team at Morgans has been look at the best ASX 200 (ASX: XJO) shares to buy this month.

Among its best dividend ideas for the month of November are the two ASX 200 shares listed below. Here’s what the broker is saying about them:

Macquarie Group Ltd (ASX: MQG)

Morgans sees this investment bank as a top option for investors right now.

This is because the broker believes Macquarie is well-placed for the long term thanks to mortgage loan market share gains and structural drivers. It explained:

We continue to like MQG’s exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while it continues to gain market share in Australian mortgages.

In respect to dividends, the broker is expecting partially franked dividends of $7.05 per share in FY 2023 and $7.36 per share in FY 2024. Based on the current Macquarie share price of $177.72, this implies yields of 4% and 4.15%, respectively.

Morgans has an add rating and $214.30 price target on Macquarie’s shares.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 dividend share that the broker is very positive on is Telstra.

Its analysts believe the telco giant could be a great option following its successful turnaround. Morgans also highlights that Telstra’s recent restructure could unlock value in its assets. It explained:

After a major turnaround, TLS has emerged in good shape with strong earnings momentum and a strong balance sheet. In late CY22 shareholders vote[d] on Telstra’s legal restructure, which opens the door for value to be released.

TLS currently trades on ~7x EV/EBITDA. However some of TLS’s high quality long life assets like InfraCo are worth substantially more, in our view. We don’t think this is in the price so see it as value generating for TLS shareholders. This, free option, combined with likely reputational damage to its closest peer, following a major cybersecurity incident, means TLS looks well placed for the year ahead.

As for dividends, Morgans is expecting Telstra to continue to pay fully franked 16.5 cents per share dividends in FY 2023 and FY 2024. Based on the current Telstra share price of $3.86, this equates to yields of 4.3%.

Morgans has an add rating and $4.60 price target on the company’s shares.

The post Morgans names 2 of the best ASX 200 dividend shares to buy 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 positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Macquarie Group 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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