There are a lot of ASX 200 dividend shares to choose from, but two that could be strong picks right now are listed below.

Here’s why analysts believe these could be the dividend shares to buy now:

South32 Ltd (ASX: S32)

The first ASX 200 dividend share that could be a buy is diversified miner South32.

Goldman Sachs is a fan of the company for a number of reasons. These are its attractive valuation, improving free cash flow outlook due to higher production and commodity prices, and potential upside from base metal growth projects.

Its analysts are expecting this to underpin fully franked dividends of 12 US cents per share in FY 2023 and then 28 US cents per share in FY 2024. Based on the current South32 share price of $4.02 and the latest exchange rates, this will mean yields of 4.5% and 10%, respectively.

Goldman Sachs also sees decent upside for its shares with its buy rating and $4.80 price target.

Transurban Group (ASX: TCL)

Another strong ASX 200 dividend share to consider buying is Transurban.

It is one of the world’s leading toll road operators with a collection of important roads across several locations.

After struggling through the pandemic, Transurban has bounced back strongly and its roads are thriving again. In fact, it recently revealed record volumes during the first half of FY 2023. This bodes well for the future, as does its development pipeline and inflation-linked price increases.

UBS is a fan of the company and has a buy rating and $15.45 price target on its shares.

As for dividends, the broker is forecasting dividends per share of 57 cents in FY 2023 and then 61 cents in FY 2024. Based on the current Transurban share price of $14.84, this will mean yields of 3.8% and 4.1%, respectively.

The post Analysts name 2 strong ASX 200 dividend shares to buy appeared first on The Motley Fool Australia.

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More reading

• 5 ASX shares I’d buy for a US recession
• Invested $4,000 in South32 shares 5 years ago? Here’s how much passive income you’ve earned
• Top defensive ASX shares to buy in May 2023
• South32 share price slumps amid ‘important’ US milestone
• ‘Buying opportunity’: 2 ASX 200 mining shares ripe to snap up now

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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