Recent weeks have been busy for brokers due to the earnings result season. Some companies announced more than expected dividends; a few were stagnant, while others either reduced the dividends or announced no dividends. However, on the whole, the FY22 earnings season has been a record year for ASX 200 dividends.
As a result, investors are looking for a consistent ASX 200 dividend yield paying stock that will be a good source of income for them and a hefty capital gain in the future. In this situation, investors are confused about which stock to invest in, hold or let go of.
Here we have two outstanding ASX 200 dividends stocks given a green signal by the brokers to invest this week.
- Mineral Resources Limited (ASX: MIN)
- Harvey Norman Holdings Limited (ASX: HVN)
Mineral Resources Limited (ASX: MIN)
Mineral Resources Limited (ASX: MIN), headquartered in Perth, Western Australia, is a large mining services provider focusing on the iron ore and hard-rock lithium industries. Combining technical expertise with a creative strategy, Mineral Resources has become one of the best-performing contractors since its 2006 listing on ASX. The company’s inception dates back to 2006.
This could be a good option for ASX 200 dividends investors who aren’t scared off by the resources industry. This is due to Mineral Resources’ increasing dependence on lithium, offsetting the decline of its iron ore operations.
Goldman Sachs has a bullish outlook on MIN due to its lithium business. According to the broker, these endeavours will contribute significantly to doubling group EBITDA to more than $2.3 billion by FY 2023.
MIN shares are rated “buy” by the broker, and their price objective of $69.50 suggests significant growth potential over the next year.
The broker has also predicted fully franked dividends of 192 cents per share in FY 2023 and 107 cents per share in FY 2024. The current price of $59.49 apiece equates to a 3.3% and 1.8% yield, respectively.
Even if the yield on the latter isn’t particularly appealing, ASX 200 dividend investors who are patient should eventually be rewarded. In the following years, Goldman anticipates expansion and a yield of 5%+ by FY 2027.
Its ASX 200 dividend yield history shows that the company has been returning the value to its shares in the form of consistent dividend payouts for over a decade.
Harvey Norman Holdings Limited (ASX: HVN)
Harvey Norman Holdings Limited (ASX: HVN) is a large Australian-based, multi-national consumer goods retailer. Harvey Norman Holdings Limited holds all company-owned and branded stores publicly traded on the ASX.
Goldman Sachs analysts have maintained their buy recommendation and raised their price target on the retail giant’s shares to $4.80.
Analysts have high hopes for the company’s ability to fight against online challengers because of the company’s appealing consumer base. This contributes to the broker’s optimistic earnings projections for FY 2023, which are higher than the market expects.
As a result of its regional focus, premium boomer exposure, and a more significant percentage of bulkier items, it is already built into the consensus. It is more defensive on competition (not shipped by Amazon yet). Compared to the FactSet consensus, NPAT growth in FY23 was +7%, and our TP implied an ex-property P/E of 5x with a dividend yield of 8% for FY24. HVN’s 21% TSR at a reasonable price is enticing, in our opinion; therefore, we’re sticking with our buy recommendation.
The broker expects dividends of 38 cents per share in FY 2023 and 32 cents per share in FY 2024, both fully franked. The current price of $4.15 per share equates to a 9% and 7.5% yield for Harvey Norman investors.
The firm’s ASX 200 dividend yield history reveals that it has consistently returned value to its shareholders in the form of dividend payments for over a decade. It can be concluded from the fact that the company has maintained a dividend payment history.