Goldman Sachs names 3 strong ASX 200 dividend shares to buy

Broker looking at the share price.

Luckily for income investors is that there are plenty of options to choose from on the Australian share market.

But which ASX 200 dividend shares offer good value for money right now?

Three that Goldman Sachs is tipping as buys are listed below. Here’s what they are saying about these shares:

Endeavour Group Ltd (ASX: EDV)

The first ASX 200 dividend share for income investors to look at according to Goldman is Endeavour. It is the drinks giant behind the BWS and Dan Murphy’s brands, as well as an extensive network of hotels.

Goldman likes Endeavour due to its “clear market leading position” and attractive valuation.

As for dividends, the broker is forecasting fully franked dividends of approximately 22 cents per share in FY 2024 and FY 2025. Based on the current Endeavour share price of $5.29, this will mean yields of 4.15% for both years.

Goldman has a buy rating and $6.20 price target on the company’s shares.

Suncorp Group Ltd (ASX: SUN)

Goldman Sachs thinks Suncorp is an ASX 200 dividend share to buy right now. It is the insurance giant behind a large collection of brands including AAMI, Apia, Bingle, CIL Insurance, GIO, Shannons, Terri Scheer, and Vero.

The broker believes that Suncorp is well-positioned for growth. This is thanks “in large part the tailwinds that exist in the general insurance market.” This includes “very strong renewal premium rate increases and the benefit of higher investment yields.”

Goldman expects this to underpin fully franked dividends per share of 78 cents in FY 2024 and 83 cents in FY 2025. Based on the current Suncorp share price of $15.77, this will mean dividend yields of 4.95% and 5.25%, respectively.

The broker has a buy rating and $17.54 price target on the company’s shares.

Super Retail Group Ltd (ASX: SUL)

Another ASX income share that Goldman is positive on is Super Retail. It is the owner of retail brands BCF, Macpac, Rebel, and Super Cheap Auto.

Goldman believes that “SUL will display resilience in a softer economic environment that is built upon its competitive advantage of high loyalty (~11.0m active members accounting for >75% of sales).” In addition, it notes that “this will be further bolstered as the company launches the Rebel loyalty program and continues to build personalisation capabilities.”

The broker expects this to underpin fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $14.66, this will mean good yields of 4.6% and 5%, respectively.

Goldman has a buy rating and $17.80 price target on its shares.

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Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.