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If you’re looking to combat rising inflation with some ASX 200 dividend shares, then the two listed below could be worth considering.
Analysts have recently named these ASX 200 dividend shares as buys. Here’s what you need to know about them:
National Australia Bank Ltd (ASX: NAB)
The first ASX 200 dividend share that analysts rate as a buy is banking giant NAB.
Goldman Sachs is very positive on NAB due to its balance sheet mix, which the broker feels provides the best exposure to the domestic system growth. It also highlights that NAB’s franchise is performing strongly, growing at or above system growth in most segments, and expects this to continue.
It commented: “[NAB] remains our preferred sector exposure given: i) NAB’s balance sheet mix provides the best exposure to the domestic system growth we foresee over the next 12-18 months, which should favour commercial over mortgage lending, ii) NAB’s franchise is performing strongly, growing at or above system growth in most segments, iii) NAB’s disclosure on NIM leverage to higher rates is even more optimistic than we previously estimated.”
In light of this, the broker has Goldman Sachs recently retained their conviction buy rating on the bank’s shares with a $34.17 price target.
Its analysts are also forecasting attractive dividend yields in the near term. They have pencilled in fully franked dividends of $1.50 per share in FY 2022 and $1.65 per share in FY 2023. Based on the current NAB share price of $31.57, this implies yields of 4.75% and 5.2%, respectively.
Another ASX 200 dividend share to look at is South32. It is diversified mining and metals company producing a range of commodities. This includes alumina, aluminium, bauxite, coal, copper, manganese, nickel, and silver across operations in Australia, Southern Africa and South America.
Morgans is a big fan of the company. It currently has an add rating and $6.10 price target on the miner’s shares.
The broker commented: “We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.”
As for dividends, Morgans is forecasting fully franked dividends in the region of 26 cents per share in FY 2022 and 35 cents per share in FY 2023. Based on the current South32 share price of $4.65, this equates to yields of 5.5% and 7.5%, respectively.