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2 top ASX 200 dividend stocks are rated as buys by experts

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Are you looking for dividend stocks to buy? If so, the two listed below may be quality options.

Analysts recently rated this dividend stock as a buy. Here’s what you need to know about them:

Country group (ASX: TCL)

The first ASX 200 dividend stock that could be the best option for income investors next week is Transurban.

It is one of the world’s leading toll road operators with a portfolio of critical roads and a series of development projects to drive future growth.

The Morgans team is positive about the company. So much so, he has a Transurban in the Best Ideas list with a target price of $13.85. The broker likes the company because of the region’s population, employment growth, urbanization and positive inflation impact. This explained:

TCL owns a net portfolio of toll road concession assets located in Melbourne, Sydney, Brisbane and North America. This provides an impact on the regional population and the growth of employment and urbanization. Given a very strong EBITDA margin, earnings are driven by traffic growth (with post-COVID recovery) and fare increases (around 70% at CPI minimum and around one-quarter at a flat around 4.25% p.a.). We believe TCL will continue to be attractive to investors given its market capitalization ratio (important for passive index tracking), high asset quality, management team, balance sheet and growth prospects

On the dividend side, Morgans expects dividends per share to be 53.4 cents in fiscal 2023, followed by 65.8 cents in fiscal 2024. Based on Transurban’s current share price of $12.54, this implies a yield of 4.25% and 5.25%, respectively.

Woolworths Company Limited (ASX: WOW)

Another ASX 200 dividend stock to consider is the retail conglomerate.

Woolworths may be a better option due to its strong retail brands, entrenched customer base, positive inflation exposure and defensive qualities. The latter were put on public display during the pandemic and could be needed if Australia’s economy falls into recession.

In addition, the Goldman Sachs team highlights the company’s digital and omnichannel advantage. The broker expects this advantage to further increase market share and margins in the coming years. Goldman said:

Despite a still volatile year ahead and the noise in the pcp data, most industry vendors note that WOW continues to be in a better position for multi-channel capabilities. This is largely due to the company’s early investment/advantage in digital and its more flexible development of its multi-channel supply chain.

Partly for this reason, Goldman now has a Condemned Buy rating and a $42.70 price target on the company’s stock.

On the dividend side, Goldman forecasts fully franked dividends per share of $1.07 in fiscal 2023 and $1.16 in fiscal 2024. Based on Woolworths’ current share price of $33.76, this would represent a yield of 3.2% and 3.4% respectively.

https://www.fool.com.au/2022/10/16/2-first-rate-asx-dividend-shares-experts-rate-as-buys/

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