Buy these ASX 200 dividend shares when the market reopens: analysts

Are you looking for ASX 200 dividend shares to buy when the market reopens?

If you are, then you may want to check out the two listed below that are from very different sides of the market. This could make them good options if you’re looking to maintain a diverse portfolio.

Here’s why analysts rate them highly right now:

Santos Ltd (ASX: STO)

The first ASX 200 dividend share that has been rated as a buy is Santos.

It was already one of the region’s largest energy producers. But thanks to its recent merger with Oil Search, it is now even larger and was aiming to deliver production of 103-106 million barrels of oil equivalent (mmboe) in 2022. This will be up from 92.1 mmboe in 2021.

The team at Morgans is positive on the company due to its growth prospects and diversified earnings base. The broker believes this leaves it  “well placed to outperform against a backdrop of a broader sector recovery.”

Morgans currently has an add rating and $9.00 price target on Santos’ shares.

As for dividends, the broker is expecting dividends per share of 23 cents in FY 2022 and 24.4 cents in FY 2023. Based on the current Santos share price of $7.33, this will mean yields of 3.1% and 3.3%, respectively.

Woolworths Limited (ASX: WOW)

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

It is of course the retail giant behind the eponymous Woolworths supermarket brand. In addition, it owns a collection of other brands such as Big W and has a growing presence in the pet care and food market.

Goldman Sachs is bullish on Woolworths due to its strong market position and digital leadership. It expects the latter to become important in the coming years and believes it could help support further market share and margin gains.

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

In respect to dividends, the broker 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 $33.88, this will mean yields of 3% and 3.3%, respectively.

The post Buy these ASX 200 dividend shares when the market reopens: analysts appeared first on The Motley Fool Australia.

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More reading

• Should I buy Santos shares in 2023?
• Why Life360, Lithium Power, Lovisa, and Santos shares are storming higher today
• Oil best China reopening play: Goldman Sachs
• 5 things to watch on the ASX 200 on Thursday
• Morgans names 2 ASX 200 dividend shares to buy now

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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