Brokers have been busy in recent weeks adjusting their forecasts and recommendations to reflect recent market updates.

Two ASX 200 dividend shares that have fared well are listed below. Here’s why brokers think income investors should be buying these shares:

ANZ Group Holdings Ltd (ASX: ANZ)

The first ASX 200 dividend share that has just been tipped as a buy is banking giant, ANZ.

The team at Citi has been running the rule over its half-year results and has reaffirmed its view that ANZ is the broker’s top pick in the sector.

Citi has a buy rating and $26.50 price target on its shares.

The broker commented that it sees “ANZ’s unique capabilities as set to deliver relative outperformance in the current market conditions. ANZ is our preferred Major Bank exposure.”

As for dividends, Citi is forecasting fully franked dividends of 164 cents per share in FY 2023 and then 166 cents per share in FY 2024. Based on the current ANZ share price of $24.11, this will mean yields of 6.8% and 6.9%, respectively.

Rio Tinto Ltd (ASX: RIO)

Another ASX 200 dividend share that has been given the thumbs up following a recent update is mining giant Rio Tinto.

Goldman Sachs remains very bullish on the miner and has kept it on its conviction list with a buy rating and $136.20 price target. The broker highlights Rio Tinto’s “compelling relative valuation vs. peers” and “strong FCF.”

Its analysts expect the latter to support some very big dividend yields in the coming years.

Goldman is expecting fully franked dividends per share of US$5.36 (A$8.07) in FY 2023 and then US$4.68 (A$7.05) in FY 2024. Based on the current Rio Tinto share price of $110.92, this will mean yields of 7.3% and 6.35%, respectively.

The post 2 ASX 200 dividend shares to buy following recent updates: brokers appeared first on The Motley Fool Australia.

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More reading

• Rio Tinto and this ASX 200 share are strong buys: analysts
• 5 reasons Rio Tinto shares could surge 21%
• Leading brokers name 3 ASX shares to buy today
• If you invest $10,000 in ANZ shares here’s how much passive income you’ll earn
• Brokers say these ASX 200 mining shares are top 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 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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