Buy these ASX 200 dividend shares for income: Goldman Sachs

If you’re looking for dividends, then the ASX 200 shares listed below could be worth considering.

Here’s why analysts at Goldman Sachs say these ASX 200 dividend shares are right now:

Telstra Corporation Ltd (ASX: TLS)

The first ASX 200 dividend share to look at is telco giant Telstra.

After many years of struggling, Telstra is back on form and targeting solid and sustainable growth over the coming years. This will be underpinned by its T25 strategy, which has just replaced the very successful T22 strategy.

Goldman Sachs is a fan of the company and believes it is well-placed in the current environment thanks to rational competition, price increases, and its cost cutting plans.

The broker is expecting this to lead to fully franked dividends of 17 cents per share in FY 2023 and then 18 cents per share in FY 2024. Based on the current Telstra share price of $4.12 this equates to yields of 4.1% and 4.35%, respectively.

Goldman has a buy rating and $4.60 price target on the company’s shares.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that has been tipped as a buy is Westpac.

Although there are concerns over the state of the global banking sector, Goldman Sachs believes Australian banks are safe from the crisis. It highlights the strong liquidity that the big four banks have in comparison to requirements.

In light of this, the broker continues to believe that Westpac is well-placed to deliver solid earnings growth in the coming years. This is thanks to its cost reduction plans and positive exposure to rising interest rates.

Goldman expects this to lead to fully franked dividends of 147 cents per share in FY 2023 and 156 cents per share in FY 2024. Based on the current Westpac share price of $21.42, this will mean yields of 6.85% and 7.3%, respectively.

Goldman Sachs has a conviction buy rating and $27.74 price target on its shares.

The post Buy these ASX 200 dividend shares for income: Goldman Sachs appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Which ASX 200 big four bank share could be the safest to hold?
• Want high income right now? These are the ASX dividend shares I would buy
• Boost your passive income with Westpac and this ASX 200 dividend share: experts
• ASX 200 bank shares shrug off global banking turmoil to leap higher

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Group. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/njzplS0