Buy Telstra and this ASX 200 dividend share: analysts

If you’re looking for dividend shares to buy in 2023, then you may want to look at the two shares listed below that have been rated as buys.

Here’s why brokers rate these ASX 200 dividend shares highly right now:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share that brokers rate as a buy is supermarket giant Coles.

A note out of Citi reveals that its analysts have a buy rating and $18.90 price target on its shares.

Citi was pleased with Coles’ decision to recently announce the sale of its fuel and convenience business and expects “the proceeds will be invested into the business (e.g. accelerate store renewals, lift omni-channel capability).”

As for dividends, the broker is expecting the retailer to pay a 72 cents per share dividend in FY 2023 and a 77 cents per share dividend in FY 2024. Based on the current Coles share price of $17.00, this will mean fully franked yields of 4.2% and 4.5%, respectively, for investors.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 share to look at is telco giant Telstra.

Morgans is tipping the company as an add rating and $4.60 price target on the company’s shares. It likes the company due to its successful turnaround via the T22 strategy and its ongoing restructure.

The broker believes the latter will unlock value for shareholders. In light of this, its analysts believe the market is undervaluing Telstra as a whole.

In respect to dividends, the broker is expecting Telstra to continue to pay fully franked 16.5 cents per share dividends in both FY 2023 and FY 2024. Based on the current Telstra share price of $4.02 this equates to yields of 4.1%.

The post Buy Telstra and this ASX 200 dividend share: analysts appeared first on The Motley Fool Australia.

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More reading

• Should you buy Telstra shares for their ‘defensive qualities’?
• Why BWX, Novonix, Symbio, and TPG shares are dropping today
• Telstra share price lower after ACCC blocks TPG deal
• Bought $1,000 of Coles shares 4 years ago? Here’s how much dividend income you’ve received
• I’d buy these 3 ASX 200 shares in 2023 and hold them for a decade

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 Coles Group and Telstra Group. 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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