Brokers name 2 ASX 200 dividend shares to buy in December

Are you looking for ASX 200 dividend shares to buy in December? If you are, then you may want to check out the two listed below that have recently been named as buys.

Here’s why brokers rate them highly right now:

National Australia Bank Ltd (ASX: NAB)

Analysts at Goldman Sachs believe that NAB could be an ASX 200 dividend share to buy.

This is due partly to its strong position in commercial banking, which the broker believes is the better part of the market to be right now given the challenging housing market.

Goldman has a buy rating and $35.41 price target on the banking giant’s shares. It commented:

We are Buy rated on NAB given i) we see volume momentum over the next 12 months as favouring commercial volumes over housing volumes and NAB provides the best exposure to this thematic, ii) NAB has delivered the highest levels of productivity over the last three years, which we think leaves it well positioned for an environment of elevated inflationary pressure, iii) NAB’s cost management initiatives, which seem further progressed vs. peers, have freed up investment spend to be more directed towards customer experience as opposed to infrastructure (it is the only major bank to be growing above system in both domestic lending and deposits over the last 12 months). The stock is trading at a discount to peers, versus the historic average discount of 11%.

As for dividends, Goldman is forecasting fully franked dividend yields of 5.5% in FY 2023 and 5.6% in FY 2024.

Suncorp Group Ltd (ASX: SUN)

The team at Morgans appears to see Suncorp as another ASX 200 dividend share to buy.

Suncorp is of course one of Australia’s leading insurance and banking companies and the owner of brands including AAMI, Apia, Bingle, GIO, Shannons, Suncorp, and Vero.

Morgans currently has an add rating and $13.98 price target on its shares. The broker believes its shares are trading at an attractive level and sees a lot of positives from its efficiency program. It commented:

While weather remains volatile, we think SUN’s underlying business trends continue to broadly track in the right direction. SUN will also reap the full benefits of its efficiency program in FY23 and we see SUN’s current valuation as undemanding, e.g. FY23 PE multiple of 13x and a 6% dividend yield.

At present, the broker is forecasting fully franked dividends per share of 77.5 cents in FY 2023 and 80 cents in FY 2024. Based on the current Suncorp share price of $12.00, this will mean yields of 6.45% and 6.65%, respectively.

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

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More reading

• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• Which ASX 200 bank share stands to benefit the most from ‘good borrowers’?
• Could NAB shares pay bigger dividends in the future?
• If I’d bought $5,000 of NAB shares at the start of this year, guess how much I’d have now
• Will ASX 200 shares bottom before the year is out? Here’s Macquarie’s ‘best guess’

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 no position in any of the stocks mentioned. 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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