2 ASX 200 dividend stocks brokers rate as top buys

A man pulls a shocked expression with mouth wide open as he holds up his laptop.

A man pulls a shocked expression with mouth wide open as he holds up his laptop.

Are you looking for dividend stocks to buy? If you are, then the two listed below could be top options.

That’s because brokers have recently named these ASX 200 dividend stocks as buys. Here’s what they are saying about them:

Coles Group Ltd (ASX: COL)

Coles could be an ASX 200 dividend stock to buy.

That’s the view of analysts at Citi, which have responded positively to a recent tour of the supermarket giant’s new automated distribution centre. The broker commented:

Redbank Site Tour showcases step change in supply-chain capability Coles hosted a site tour of its new Automated Distribution Centre (ADC) located in Redbank, Queensland. Key takeaways: 1) Witron is the leader in automation with an excellent track record offshore; 2) we should expect better on-shelf availability, more flexible range management, and lower stock losses as the two ADCs go into operation; and 3) no changes to project costs were announced. Redbank is expected to be fully operational by end-2023. while Kemps Creek is expected to be fully operational in 3Q24. There should be a positive net EBIT impact in FY25, but the first full year of benefits is not expected to be achieved until FY26. Overall, the site tour reinforces our view that Coles is moving in the right direction and the ADCs have the potential to provide a cost advantage over competitors.

As for dividends, Citi is forecasting a 69 cents per share dividend in FY 2023 and 73 cents per share in FY 2024. Based on the current Coles share price of $18.34, this will mean yields of 3.8% and 4%, respectively.

Citi has a buy rating and $20.20 price target on its shares.

National Australia Bank Ltd (ASX: NAB)

Another ASX 200 dividend stock that has been named as a buy is banking giant NAB.

Goldman Sachs is positive on the bank and sees plenty of upside and big yields on offer with its shares. It explained why it is bullish, stating:

Our Buy rating on NAB is predicated on: i) we see volume momentum over the next 12 months as favouring commercial volumes over housing volumes, and we believe NAB provides the best exposure to this thematic, ii) NAB has delivered the highest levels of productivity over the last three years and its investments continue to yield benefits (A$400 mn expected in FY23E), which we think leaves it well positioned for an environment of elevated inflationary pressure, iii) NAB’s strong capital surplus position (A$3.1 bn of surplus capital above the top-end of its target CET1 range of 11.0-11.5%) allows flexibility for further buy-backs, v) NAB returns improvements vs. peers is not reflected in valuations (details within), and vi) our revised TP offers c. 21% TSR.

In respect to dividends, the broker is expecting fully franked dividends per share of $1.66 in both FY 2023 and FY 2024. Based on the current NAB share price of $26.47, this will mean yields of 6.3% for investors.

Goldman has a buy rating on its shares with a price target of $30.69.

The post 2 ASX 200 dividend stocks brokers rate as top buys appeared first on The Motley Fool Australia.

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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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