The Australian share market is a great place to generate passive income thanks to the countless dividend-paying stocks that trade on the local bourse.
But which ASX 200 passive income stocks could be in the buy zone for investors this week?
Let’s take a look at three options that brokers have named as buys and tipped to offer very attractive dividends yields in the near term. They are as follows:
IPH Ltd (ASX: IPH)
The first ASX 200 passive income stock that could be a buy is IPH. It is a global intellectual property (IP) services company with a network of member firms across 10 IP jurisdictions.
Goldman Sachs is a fan of the company and currently has a buy rating and $8.70 price target on its shares.
Its analysts are bullish due to the company’s “defensive earnings, strong cash flow, M&A optionality and potential MtM FX upside.”
As for income, Goldman is forecasting fully franked dividends of 34 cents per share in FY 2024 and then 37 cents per share in FY 2025. Based on the current IPH share price of $6.21, this represents yields of 5.5% and 6%, respectively.
Suncorp Group Ltd (ASX: SUN)
Goldman Sachs also think that Suncorp could be a top ASX 200 passive income stock to buy. The broker currently has a buy rating and $18.00 price target on the insurance giant’s shares.
Its analysts believe that Suncorp is well-positioned to benefit from tailwinds in the general insurance market.
The broker expects this to underpin fully franked dividends of 79 cents per share in FY 2024 and then 85 cents per share in FY 2025. Based on the current Suncorp share price of $16.80, this will mean attractive dividend yields of 4.7% and 5.1%, respectively.
Transurban Group (ASX: TCL)
The team at UBS thinks toll road operator Transurban could an ASX 200 passive income stock to buy right now. The broker currently has a buy rating and $14.80 price target on its shares.
UBS likes the company due to its positive outlook and belief that its margins are improving thanks to lower costs. Another reason to be positive is that the West Gate Tunnel project is on track to complete next year and be another boost to its earnings and dividends.
For now, the broker is forecasting dividends per share of 63 cents this year and then 66 cents in FY 2025. Based on the current Transurban share price of $12.38, this will mean yields of 5.1% and 5.3%, respectively.
The post 3 ASX 200 passive income stocks to buy in July appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Monday
- 5 ASX dividend shares to buy next week
- Brokers name 3 ASX shares to buy now
- The best ASX 200 shares to buy when interest rates fall
- 3 strong ASX dividend stocks for income investors to buy
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 positions in and has recommended Goldman Sachs Group and Transurban Group. The Motley Fool Australia has recommended IPH. 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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