Brokers say these ASX 200 dividend shares are buys

Are you looking for some juicy dividend yields to boost your income portfolio?

If you are, then it could be worth checking out the buy-rated ASX 200 dividend shares named below.

Here’s what analysts are expecting from them:

Suncorp Group Ltd (ASX: SUN)

According to analysts at Goldman Sachs, insurance giant Suncorp could be an ASX 200 dividend share to buy.

Its analysts currently have a buy rating and $15.00 price target on the insurance giant’s shares.

The broker believes that trading conditions are very favourable for the company at present. It explains:

We are favourably disposed to Suncorp, noting in large part the tailwinds that exist in the general insurance market – i.e., very strong renewal premium rate increases and the benefit of higher investment yields. We think the strong rate momentum that SUN is getting should offset any volume pressures. SUN’s underlying margins are also expected to stay within 10-12% for FY24 despite higher reinsurance costs, increased perils allowances and lower reserve release assumptions at 1% as SUN benefits from significant price increases. Further, we note that we could start to see more meaningful benefits to margin from underlying claims inflation abating into FY24E.

In addition, the broker sees “possible catalysts on the horizon for SUN including capital return post the pending bank sale, if approved, and the possibility of a whole of account quota share arrangement similar to IAG.”

As for income, the broker is expecting fully franked dividends per share of 75 cents in FY 2024 and 82 cents in FY 2025. Based on the current Suncorp share price of $13.92, this will mean yields of 5.4% and 5.9%, respectively.

Transurban Group (ASX: TCL)

Another ASX 200 dividend share that brokers are positive on its toll road giant Transurban.

The team at Citi is feeling very positive about the CityLink and Cross City Tunnel owner and sees potential for it to pay dividends ahead of guidance. It said:

We believe TCL’s FY24 DPS guidance of 62c is conservative and we forecast DPS of 63.4c given strong toll price growth, traffic growth on new road completions and a slower increase in debt costs in FY24 given a small proportion (c. 3%) of the debt book is maturing this year TCL is currently trading in-line with historic EV/EBITDA multiples at 22.5x, but we see upside given the strong EBITDA growth outlook (c.12% CAGR between Fy24-FY26). Retain Buy

Its analysts have pencilled in dividends per share of 63 cents in FY 2024 and then 65 cents in FY 2025. Based on the current Transurban share price of $13.36, this will mean yields of 4.7% and 4.9%, respectively.

Citi currently has a buy rating and $15.90 price target on its shares.

The post Brokers say these ASX 200 dividend shares are buys appeared first on The Motley Fool Australia.

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