Brokers say these ASX 200 dividend shares are buys now

Investors looking for income options might want to check out the two ASX dividend shares listed below.

Both of these shares have just been tipped as buys with attractive forecast dividend yields. Here’s what brokers are saying about them:

QBE Insurance Group Ltd (ASX: QBE)

The first ASX 200 dividend share that could be in the buy zone right now is insurance giant QBE.

The team at Morgans is very positive on the company. It recently retained its add rating with a $14.93 price target on its shares. The broker commented:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~9.1x FY23F PE.

As for dividends, Morgans is expecting a 41.7 cents per share dividend in FY 2022 and then a 76.8 cents per share dividend in FY 2023. Based on the latest QBE share price of $12.05, this equates to yields of 3.5% and 6.4%, respectively

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that brokers rate as a buy is banking giant Westpac.

According to a note out of Goldman Sachs, its analysts have a buy rating and $26.55 price target on its shares.

Its analysts believe that Westpac provides investors with strong leverage to rising rates. They commented:

We continue to see WBC as our preferred exposure to the A&NZ Financials reflecting: i) its strong leverage to rising rates, ii) while we think its A$8 bn FY24 cost target will now be unachievable, we still forecast a 7% reduction in underlying expenses, iii) its recent market update highlighted that the business is still investing effectively in its franchise.

In respect to dividends, Goldman is forecasting fully franked dividends per share of $1.23 in FY 2022 and $1.37 in FY 2023. Based on the current Westpac share price of $21.53, this will mean yields of 5.7% and 6.35%, respectively, over the next two years.

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Brokers name 3 ASX shares to buy today
• Why is the Westpac share price outperforming the ASX 200 today?
• Could Westpac shares soon be saying bon voyage to money managing?
• Here are 2 ASX dividend shares experts say are buys
• Which ASX 200 bank share will win the great tech battle?

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.

from The Motley Fool Australia https://ift.tt/8eJt1zf