With interest rates at such low levels, at least for now, income investors may want to look at the dividend shares listed below for a source of income.
Here’s why these two ASX 200 dividend shares have been rated as buys:
Coles Group Ltd (ASX: COL)
The first ASX dividend share for investors to consider is retail giant.
This supermarket giant could be a top option thanks to its favourable dividend policy, long track record of same store sales growth, strong market position, and its sprawling store network.
In respect to the latter, Coles has over 800 supermarkets, over 900 liquor retail stores, and over 700 Coles express stores. But management isn’t settling for that and continues to expand its network and invest in its online business. The latter includes the construction of new smart distribution centres with automation giant Ocado.
Citi is positive on Coles. The broker currently has a buy rating and $19.60 price target on its shares.
As for dividends, it is forecasting fully franked dividends of 65 cents per share in FY 2022 and 72 cents per share in FY 2023. Based on the current Coles share price of $16.55, this will mean yields of 3.9% and 4.35%, respectively.
Commonwealth Bank of Australia (ASX: CBA)
Another ASX 200 dividend share for investors to consider is Australia’s largest bank, CBA. While its shares have bounced back strongly from recent lows following a better than expected half year result, it may not be too late to invest,
That’s the view of the team at Bell Potter, which last week upgraded the banking giant’s shares to a buy rating with a $108.00 price target.
The broker commented: “Cash NPAT was nearly on par with 2H21, a great outcome. There was also investment in operational execution (in line with the bank’s strategic priorities) coupled with a return of excess capital to shareholders of $2bn.”
Thanks to its strategic strengths of scale, brand, and diversification, which are supported by an irreplaceable infrastructure comprising over 1,100 branches, 3,800 Australia Post agencies, and nearly 3,600 ATMs, Bell Potter appears confident on the future and is forecasting earnings and dividend growth over the coming years.
Bell Potter is forecasting fully franked dividends per share of $3.87 in FY 2022 and $4.07 in FY 2023. Based on the current CBA share price of $99.49, this will mean yields of 3.9% and 4.1%, respectively.
The post 2 ASX 200 dividend shares analysts love appeared first on The Motley Fool Australia.
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More reading
- 2 ASX dividend shares with yields above 4%
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- Strap yourself in: Why ASX 200 shares could continue their wild ride in 2022
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