Markets

Purchase NAB & Other ASX 200 Dividend Stocks Now!

By Hazle Jakubowski

April 27, 2024

118

The Australian Securities Exchange (ASX) is home to many high-yielding dividend stocks from various sectors. These stocks can provide investors with a steady income stream along with potential capital appreciation opportunities, making them an attractive option for portfolio diversification.


One such stock that has caught the attention of analysts at Goldman Sachs is National Australia Bank (NAB). The bank's exposure to business banking and its significant small-to-medium enterprise (SME) franchise make it stand out among other major banks. Despite intense competition in lending, there has been a notable skew towards housing rather than businesses. This dynamic could position NAB favorably, leading to increased benefits for the bank. Goldman Sachs predicts fully franked dividends per share of $1.62 for FY2024 and FY2025 respectively, translating into 4.8% yield returns for investors.


Another ASX 200 dividend stock worth considering according to Morgans is QBE Insurance Group Ltd., one of Australia's largest insurance companies. The strength of this company lies in its robust balance sheet coupled with rate increases flowing through its insurance book and expected cost reductions over time which would improve earnings profile significantly over the coming years. Morgans forecasts dividends per share will be around 99 cents in FY2024 and then rise to 108 cents by FY2025 - offering impressive yields of approximately 5.6% and 6.1%, respectively.


Telecommunications giant Telstra Corporation Limited also offers promising prospects as an ASX200 dividend stock according to Bell Potter analysts who believe shares are currently undervalued given their growth outlooks despite having lower growth rates compared to some competitors within S&P/ASX20 index constituents group . With mid-high single-digit forecast EPS growth in FY25 plus a good dividend yield, Telstra becomes an interesting pick for income-seeking investors looking at telecom sector exposure within their portfolios.


Bell Potter anticipates fully franked dividends per share reaching up to 18 cents in FY2024 and then increasing to 19 cents by FY2025, yielding returns of about 4.95% and 5.2%, respectively.


Therefore, if you're on the hunt for income-generating options to add to your portfolio, these ASX200 dividend stocks - NAB, QBE Insurance Group Ltd., and Telstra Corporation Limited could be worth considering due to their promising dividends yields coupled with potential growth prospects as suggested by leading market analysts.


Remember though that investing always carries risks and it's important to conduct thorough research or seek professional advice before making any investment decisions. Also keep in mind that analyst recommendations may not align with your personal financial goals or risk tolerance levels.



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