Analysts name 2 ASX 200 dividend shares to buy

Are you searching for dividend shares to buy? Then take a look at the two listed below that have been given buy ratings.

Here’s what you need to know about these ASX 200 dividend shares:

Coles Group Ltd (ASX: COL)

This supermarket giant could be an ASX 200 dividend share to buy.

While many retailers are struggling in the current environment, Coles’ sales have been growing and look set to continue doing so thanks to its defensive qualities, strong market position, and positive exposure to rising inflation.

Combined with its focus on cutting costs with automation and efficiencies, this bodes well for dividends in the coming years.

Analysts at Morgans are very positive on the company and currently have an add rating and $20.65 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 61 cents per share in FY 2022 and then 64 cents per share in FY 2023. Based on the latest Coles share price of $18.48, this will mean yields of 3.3% and 3.5%, respectively.

South32 Ltd (ASX: S32)

Another ASX 200 dividend share to look at is South32. It is diversified mining and metals company producing a range of commodities. This includes alumina, aluminium, bauxite, coal, copper, manganese, nickel, and silver across operations.

Macquarie is a big fan of the company and has named it as one of its preferred picks in the resources sector. This is thanks largely to its strong free cash flow generation. Earlier this week the broker retained its outperform rating and $6.00 price target on the miner’s shares.

In respect to dividends, the broker is forecasting fully franked dividends per share of 34.4 cents in FY 2022 and 40.5 cents in FY 2023. Based on the current South32 share price of $3.50, this represents huge yields of 9.8% and 11.6%, respectively.

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

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• South32 share price backtracks amid sale of royalties
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 supermarket shares lead as household spending jumps
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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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