Analysts say buy these growing ASX 200 dividend shares for passive income

If you’re wanting to boost your income with some ASX 200 dividend shares, then you might want to consider the two listed below.

Both have been tipped to provide investors with a growing stream of fully franked dividends. Here’s what you need to know about these dividend shares:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share to look at is Coles.

It is one of the big two supermarket operators with over 800 supermarkets. It also owns over 900 liquor retail stores and over 700 Coles express stores. However, the latter are in the process of being divested.

Coles isn’t settling for this, though. As well as growing its network further, the company is aiming to make its operations more efficient through cost cutting and its focus on automation with Ocado.

Citi is very positive on its outlook and has a buy rating with a $20.20 price target on its shares. It is also forecasting fully franked dividends per share of 69 cents in FY 2023 and 71 cents in FY 2023.

Based on the current Coles share price of $18.00, this implies yields of 3.7% and 3.85%, respectively.

Suncorp Group Ltd (ASX: SUN)

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

It is one of Australia’s leading insurance and banking companies and the owner of brands including AAMI, Apia, Bingle, GIO, Shannons, Suncorp, and Vero brands.

Morgans is positive on Suncorp and currently has an add rating and $14.44 price target on its shares.

It likes the company due to its efficiency program, attractive valuation, and generous yield. In respect to the latter two, the broker commented that “[w]ith SUN trading on 11.5x FY24F earnings and a 6% dividend yield, we see it as reasonable value at current levels.”

At present, the broker is forecasting fully franked dividends per share of 77.7 cents in FY 2023 and 87.8 cents in FY 2024. Based on the current Suncorp share price of $11.94, this will mean yields of 6.5% and 7.35%, respectively.

The post Analysts say buy these growing ASX 200 dividend shares for passive income appeared first on The Motley Fool Australia.

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More reading

• The record Coles dividend is being paid today. Here’s the lowdown
• Stay away from this ASX sector (and buy this one instead): expert
• Here are 2 ASX dividend shares that brokers rate as buys
• For $1,000 in monthly passive income, buy 18,462 shares of this ASX 200 stock
• Citi rates these 3 ASX 200 blue chip shares as buys

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 Coles Group. 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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