Buy NAB and this excellent ASX 200 dividend share for passive income: brokers

Are you looking for ASX 200 dividend shares to buy? 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 these dividend shares highly right now:

National Australia Bank Ltd (ASX: NAB)

The first ASX 200 dividend share that has been named as a buy is big four bank NAB.

The team at Goldman Sachs is positive on NAB and has named it among its top two picks.

Goldman likes NAB in the current environment due to its exposure to commercial lending. Its analysts highlight that they “see volume momentum over the next 12 months as favouring commercial volumes over housing volumes” and note that “NAB provides the best exposure to this thematic.”

The broker currently has a buy rating and $35.42 price target on its shares.

In respect to dividends, Goldman is forecasting fully franked dividends of $1.73 per share in FY 2023 and $1.76 per share in FY 2024. Based on the current NAB share price of $28.07, this implies yields of 6.15% and 6.3%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share that has been named as a buy is Wesfarmers.

It is the conglomerate behind a range of businesses such as Bunnings, Kmart, Officeworks, and Priceline.

The team at Morgans are positive on Wesfarmers in the current environment. This is due to its value offering. The broker highlights that “Kmart is well-placed to benefit with the average price of an item at around $6-7.”

As for dividends, its analysts are forecasting fully franked dividends per share of $1.79 in FY 2023 and $1.92 in FY 2023. Based on the current Wesfarmers share price of $51.50, this will mean yields of 3.5% and 3.7%, respectively.

Morgans has an add rating and $55.60 price target on Wesfarmers’ shares.

The post Buy NAB and this excellent ASX 200 dividend share for passive income: brokers appeared first on The Motley Fool Australia.

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More reading

• Passive income: How much to invest to get $800 per month
• 3 Warren Buffett tips on how to invest in ASX 200 banks
• Why did the NAB share price tank more than 7% in March?
• Top ASX shares to buy in April 2023
• Why did the Wesfarmers share price outperform the ASX 200 in March?

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 Wesfarmers. 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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