Analysts name 2 ASX 200 dividend shares to buy now

Are you looking for dividend shares to buy? If you are, then you might want to look at the ASX 200 shares listed below.

Here’s why these ASX dividend shares could be in the buy zone in July:

Westpac Banking Corp (ASX: WBC)

The first ASX 200 dividend share that could be in the buy zone is Westpac.

Australia’s oldest bank has been tipped as a buy by analysts at Citi. Partly due to its plan to target a reduced cost base of $8 billion by FY 2024, the broker sees Westpac “delivering the strongest EPS growth in the sector” in the coming years. This could bode well for dividend payments.

In fact, Citi is forecasting fully franked dividends of 123 cents per share in FY 2022 and 155 cents per share in FY 2023. Based on the current Westpac share price of $20.16, this will mean yields of 6.1%, 7.7%, respectively.

The broker also sees plenty of upside for the bank’s shares, with its buy rating and $29.00 price target.

Woolworths Group Ltd (ASX: WOW)

Another ASX 200 dividend share that could be in the buy zone is this retail giant.

Woolworths recently released its third-quarter update and revealed strong sales growth that was ahead of the market’s expectations. This and its positive start to the fourth quarter went down well with the team at Goldman Sachs. Pleasingly, its analysts expect this positive trend to continue over the coming years. It said earlier this week:

We forecast [a sales] CAGR of 6.6% and underlying NPAT of 14.1% over FY22-24e, with key driver being market share gain of AU Foods business at comp sales growth of FY23/24 8.8% and 6.6% respectively driven by effective cost-price pass through and additional mix improvement with relatively stable volume growth.

In respect to dividends, Goldman Sachs is forecasting fully franked dividends per share of 96 cents in FY 2022 and $1.18 in FY 2023. Based on the current Woolworths share price of $37.16, this will mean yields of 2.6% and 3.2%, respectively.

Goldman has a buy rating and $40.50 price target on its shares.

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

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Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 recommended Westpac Banking Corporation. 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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