Buy BHP and these excellent ASX 200 dividend shares

MotleyFool
01-19

Looking for an income boost? If you are, then check out the ASX 200 dividend shares in this article.

That's because they have recently been named as buys by brokers. Here's what they are saying about them:

BHP Group Ltd (ASX: BHP)

Goldman Sachs thinks that mining giant BHP could be an ASX 200 dividend share to buy.

It likes the Big Australian because of its exposure to copper. It highlights that its analysts "remain bullish on copper due to ongoing supply side challenges and increasing demand."

The broker expects "BHP's copper EBITDA to increase by ~US$3bn to ~US$10bn by FY26E (~45% of group EBITDA)."

This is expected to underpin fully franked dividends per share of US$1.08 in FY 2025 and US$1.14 in FY 2026. Based on its current share price of $40.05, this equates to dividend yields of 4.3% and 4.7%, respectively.

Bell Potter has a buy rating and $47.50 price target on its shares.

Challenger Ltd (ASX: CGF)

Goldman Sachs also believes that annuities company Challenger could be an ASX 200 dividend share to buy.

It is positive on Challenger due to its "exposure to the growing superannuation market" and belief that "higher yields should drive a favorable sales environment for retail annuities."

It expects this to support the payment of fully franked dividends of 27 cents per share in FY 2025 and then 28 cents per share in FY 2026. Based on Challenger's current share price of $6.13, this would equate to attractive yields of 4.4% and 4.6%, respectively.

Goldman Sachs currently has a buy rating and $7.60 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

Finally, Morgans thinks that HomeCo Daily Needs could be an ASX 200 dividend share to buy.

HomeCo Daily Needs is a property company with a mandate to invest in convenience-based assets across the target sub-sectors of neighbourhood retail, large format retail and health and services.

Morgans likes the company and highlights that its "portfolio has resilient cashflows and continues to be a beneficiary of accelerating click & collect trends."

In light of this, it is forecasting dividends per share of 8.5 cents in FY 2025 and then 8.7 cents in FY 2026. Based on the current HomeCo Daily Needs share price of $1.16, this will mean dividend yields of 7.3% and 7.5%, respectively.

Morgans has an add rating and $1.36 price target on its shares.

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