‘Attractive value & dividend’: 2 alluring ASX 200 shares to buy now

Two older male friends using tech to record their run.Two older male friends using tech to record their run.

If you’re stuck for S&P/ASX 200 Index (ASX: XJO) investment ideas at the moment, you are not the only one.

The fact is that we are living in uncertain times. Inflation is still high, no matter what the bulls are telling you, and the high cost of mortgages and life in general could hit the economy hard over the next few months.

It’s no surprise stock selection is a tough game right now. So this could be an opportune time to take a lead from the professionals.

As an example, here’s a pair of ASX 200 dividend stock picks from Baker Young managed portfolio analyst Toby Grimm:

This bank can fight through current troubles

Banks are in the “too hard” basket for many investors currently, but Grimm is bullish on Westpac Banking Corp (ASX: WBC).

“This bank has underperformed its major peers by an average of 33% during the past five years,” Grimm told The Bull.

“Following a better-than-expected 2023 half year result, we see attractive relative value and dividend yield.”

Indeed the Westpac share price has plunged 9.6% over the past year, and almost 7% year to date.

That’s left it with a decent fully franked dividend yield of 6.3%.

Grimm acknowledged the bank has headwinds, but it’s under control.

“Cost pressures continue to be a major detractor, but they are a controllable factor.”

Other professionals are divided over the merits of Westpac shares.

According to CMC Markets, five out of 17 analysts rate the stock as a buy. Six reckon it’s a hold while another six are urging investors to sell.

This healthcare provider can fight through current troubles

Private hospital operator Ramsay Health Care Ltd (ASX: RHC) saw its share price fall off a cliff at the start of this month.

Grimm attributed this to investor disappointment with its third-quarter numbers.

“Like many other firms, Ramsay Health had experienced cost pressures, which had a negative impact.”

But he expects this headwind to be transitory.

“We expect cost pressures to ease as operating leverage resumes with a continuing recovery in post pandemic revenues, which was evident in the results.”

Ramsay Health shares have tumbled more than 24% over the past year, and now pay out a 1.6% fully franked dividend yield.

Grimm’s peers are also somewhat polarised about Ramsay shares.

CMC Markets currently shows six out of 19 analysts rating the stock as a buy, with 11 recommending a hold.

The post ‘Attractive value & dividend’: 2 alluring ASX 200 shares to buy now appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

See The 5 Stocks
*Returns as of April 3 2023

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);

More reading

Motley Fool contributor Tony Yoo 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.

from The Motley Fool Australia https://ift.tt/LS8YIj0

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s