Invest in NIB and this Dividend Stock from ASX 200 Today

As we step into March, income investors are eyeing potential additions to their portfolios, and analysts have identified ASX 200 dividend stocks that could be lucrative choices. Here's a closer look at two top picks that brokers are rating as buys for income-focused investors.

1. NIB Holdings Limited (ASX: NHF)

Goldman Sachs recommends NIB Holdings Limited as a promising ASX 200 dividend stock, emphasizing its defensive exposure in the private health insurance sector. NIB stands out for benefiting from favorable operating trends and demonstrating robust underlying top-line growth attributed to the expansion of policyholders and premium rate increases. The appeal of NIB extends to its diversified earnings, which are not solely dependent on regulated resident health insurance. Goldman Sachs underscores the attractiveness of NIB based on its valuation. In terms of dividend forecast, the broker predicts fully franked dividends per share of 31 cents in FY 2024 and 30 cents in FY 2025. Considering the current NIB share price of $7.35, this corresponds to yields of 4.2% and 4.1%, respectively. Maintaining a buy rating, Goldman Sachs sets a $8.10 price target on NIB shares.

2. Transurban Group (ASX: TCL)

Citi expresses a bullish sentiment on Transurban Group (ASX: TCL), endorsing it as an ASX 200 dividend stock worth considering. Recognized as a leading toll road operator, Transurban, managing toll roads like CityLink and AirportlinkM7, has garnered positive attention from Citi analysts. The brokerage firm is optimistic about Transurban's dividend outlook, believing the company is well-positioned to surpass its dividend guidance for FY 2024. Citi deems the FY24 DPS guidance of 62 cents as conservative, attributing it to robust toll price growth and increased traffic on newly completed roads. The broker forecasts dividends per share of 63.6 cents in FY 2024 and 65.1 cents in FY 2025, translating to yields of 4.7% and 4.8%, respectively, based on the current Transurban share price of $13.43. Maintaining a buy rating, Citi sets a $15.60 price target on Transurban shares.

Conclusion

As investors seek to fortify their income portfolios, the endorsements from Goldman Sachs and Citi shed light on potential opportunities within the ASX 200. NIB Holdings and Transurban Group, with their respective strengths and dividend outlooks, present compelling choices for those prioritizing consistent returns.

It's crucial for investors to conduct thorough research, considering their financial goals and risk tolerance, before making investment decisions. The ASX 200 dividend stocks highlighted here provide a starting point for income-focused investors navigating the dynamic landscape of March.