Experts name 2 quality ASX 200 dividend shares for income investors to buy

Are you looking for passive income options for 2023? If you are, then you may want to look at the quality ASX 200 dividend shares listed below.

Here’s why these shares could be top options this year:

Deterra Royalties Ltd (ASX: DRR)

The first ASX 200 dividend share for income investors to look at buying is Deterra Royalties.

It is a mining royalties company and the owner of a portfolio of royalty assets across a range of commodities. The key asset in the company’s portfolio is the Mining Area C (MAC) iron ore operation, which is part of Western Australia Iron Ore (WAIO), and operated by mining giant BHP Group Ltd (ASX: BHP).

In addition, Deterra will receive royalties from the massive Eneabba Project owned by Iluka Resources Limited (ASX: ILU) when it commences production in the near future.

The team at Citi is positive on the company and has a buy rating and $4.70 price target on its shares.

As for dividends, Citi is forecasting fully franked dividends per share of 26 cents in FY 2023 and 28 cents in FY 2024. Based on the current Deterra Royalties share price of $4.65, this will mean yields of 5.6% and 6%, respectively.

Transurban Group (ASX: TCL)

Another ASX 200 dividend share that could be a good option for a income investors is Transurban.

It is a leading toll road operator that owns a portfolio of roads in Australia and North America. It also has a significant project pipeline that could support its growth long into the future.

While its roads were quiet during the pandemic, traffic volumes are now booming again. Combined with its positive exposure to inflation, Transurban has been tipped to grow its earnings and dividends at a solid rate in the coming years.

Macquarie is a fan of the company and has an outperform rating and $14.19 price target on its shares.

In respect to dividends, the broker is forecasting dividends per share of 53 cents in FY 2023 and then 56.5 cents in FY 2024. Based on the current Transurban share price of $13.15, this will mean yields of 4% and 4.3%, respectively.

The post Experts name 2 quality ASX 200 dividend shares for income investors to buy appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in January 2023
• Buy NAB and this ASX 200 dividend share: analysts
• Analysts name 2 quality ASX 200 shares for a retirement portfolio
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• Building a retirement income portfolio? Buy these unstoppable ASX dividend shares – analysts

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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