Brokers say these ASX 200 shares are buys for income investors

Are you looking for dividends to boost your income? If you are, then you may want to check out the two ASX 200 dividend shares listed below that brokers have named as buys.

Here’s why analysts rate them highly right now:

Suncorp Group Ltd (ASX: SUN)

The first ASX 200 dividend share that has been named as a buy is Suncorp. It is one of Australia’s leading insurance and banking companies and name behind a range of brands including AAMI, Apia, Bingle, GIO, Shannons, Suncorp, and Vero.

The team at Morgans is positive on the company due to its efficiency program and strong underlying business trends. In respect to the former, the broker expects Suncorp to “reap the full benefits of its efficiency program in FY23.”

At present, the broker is expecting this to lead to fully franked dividends per share of 77.5 cents in FY 2023 and 80 cents in FY 2024. Based on the current Suncorp share price of $11.89, this will mean yields of 6.5% and 6.7%, respectively.

Morgans currently has an add rating and $13.98 price target on its shares.

Woolworths Limited (ASX: WOW)

Another ASX 200 dividend share that has been named as a buy is Woolworths.

Goldman Sachs is a fan of the retail giant due to its strong market position and digital leadership. The broker expects this to support further market share and margin gains.

In addition, its analysts were supportive of Woolworths’ decision to partially sell down its Endeavour Group Ltd (ASX: EDV) stake this week to raise investment funds. Particularly given speculation that it will use the funds to increase its exposure to the growing pet care market.

For now, Goldman is forecasting fully franked dividends of $1.02 per share in FY 2023 and $1.13 per share in FY 2024. Based on the current Woolworths share price of $34.29, this will mean yields of 3% and 3.3%, respectively.

Goldman has a conviction buy rating and $41.70 price target on the company’s shares.

The post Brokers say these ASX 200 shares are buys for income investors appeared first on The Motley Fool Australia.

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More reading

• Bell Potter says these are some of the best ASX shares to buy for 2023
• Why is the Endeavour share price sinking today?
• Woolworths share price higher on Endeavour selldown: What’s going on?
• 5 things to watch on the ASX 200 on Wednesday
• Why is the ANZ share price marching higher on Tuesday?

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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