Buy these ASX 200 dividend shares for passive income: analysts

If you’re looking for ASX 200 dividend shares to add to your income portfolio, then it could be a good idea to check out the two listed below.

These ASX dividend shares have been rated as buys by analysts. Here’s what they are saying about them:

Aurizon Holdings Ltd (ASX: AZJ)

The first ASX 200 dividend share that has been tipped as a buy is Aurizon.

It is Australia’s largest rail freight operator. It connects miners, primary producers, and industry with international and domestic markets via its extensive national rail and road network.

Analysts at Morgans are positive on the company due to its current valuation and its “higher quality Network and Coal haulage businesses.”

The broker is expecting the strength of these businesses to underpin growing dividends in the near term. It is forecasting partially franked dividends of 17 cents per share in FY 2023 and then 19 cents per share in FY 2024. Based on the latest Aurizon share price of $3.34, this will mean attractive dividend yields of 5.1% and 5.7%, respectively.

Morgans currently has an add rating and $3.81 price target on its shares.

Rio Tinto Ltd (ASX: RIO)

Another ASX 200 dividend share that has been tipped as a buy is mining giant Rio Tinto.

Goldman Sachs is particularly bullish on the miner due to its “compelling valuation” and favourable iron ore prices. It is also very positive on the company’s medium outlook, noting that it expects to “return to production growth in 2023.”

The broker is expecting this to underpin fully franked dividends per share of US$5.33 in FY 2023 and then US$5.98 in FY 2024. Based on current exchange rates and the latest Rio Tinto share price of $117.74, this will mean yields of 6.7% and 7.5%, respectively.

Goldman Sachs currently has a buy rating and lifting its price target to $140.40.

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

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More reading

• Why did the Rio Tinto share price lag the ASX 200 today?
• Top ASX dividend shares to buy in April 2023
• Buy these ASX dividend shares next week for passive income: broker
• Rio Tinto share price lifts on copper project news
• Why did the BHP share price have such a top run today?

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 recommended Aurizon. 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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