Top ASX 200 Income Stocks to Buy Now, Including Telstra

For those on the hunt for ASX 200 income stocks to add to their portfolio in June, we have compiled a list of top picks that analysts currently rate as buys. These stocks not only offer potential upside but also promise substantial dividend yields. Here are the details:

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Charter Hall Retail REIT (ASX: CQR)

Charter Hall Retail REIT is an attractive option for investors seeking reliable income from ASX 200 stocks. This property company primarily invests in supermarket-anchored neighborhood and sub-regional shopping centers. Analysts at Citi are bullish on Charter Hall Retail REIT due to its inflation-linked rental increases, which are expected to drive strong dividend performance.

Dividends and Yields: Citi forecasts dividends of 28 cents per share for both FY 2024 and FY 2025. With the current share price at $3.35, this translates to impressive yields of 8.4%. 

Price Target: Citi has set a buy rating with a price target of $4.00 per share, indicating potential upside of nearly 20%. This makes Charter Hall Retail REIT a compelling buy for income investors seeking high yields and growth potential.

Telstra Group Ltd (ASX: TLS)

Telstra Group Ltd stands out as another top pick among ASX 200 income stocks. As Australia's largest telecommunications company, Telstra serves millions of mobile phone and broadband customers. Goldman Sachs recommends buying Telstra shares, citing the company's consistent earnings and dividend growth as key attractions.

Dividends and Yields: Goldman Sachs expects fully franked dividends of 18 cents per share in FY 2024, rising to 18.5 cents per share in FY 2025. Based on the current share price of $3.56, these dividends yield 5% and 5.2% respectively.

Price Target: With a buy rating and a price target of $4.25, Goldman Sachs sees an upside of almost 20% over the next year. Telstra's stable dividends and growth potential make it a solid choice for income-focused investors.

Transurban Group (ASX: TCL)

Transurban Group is another ASX 200 income stock worth considering. This urban toll road company operates assets in both Australia and North America, including the Cross City Tunnel and Westlink M7 in Australia, and the 95 Express Lanes and A25 in North America. Citi's analysts are very positive on Transurban’s outlook, expecting it to deliver strong dividend yields in the near term.

Dividends and Yields: Citi forecasts dividends per share of 63.6 cents in FY 2024 and 65.1 cents in FY 2025. Given the current share price of $12.80, these figures correspond to yields of 5% and 5.1% respectively.

Price Target: Citi has a buy rating with a price target of $15.50 per share, suggesting potential upside of 21%. Transurban's robust dividend yields and growth prospects make it an appealing investment for those looking to enhance their income portfolio.

Detailed Analysis of Top ASX 200 Income Stocks

Charter Hall Retail REIT’s investment strategy focuses on supermarket-anchored shopping centers, which offer stability and resilience, especially in volatile economic times. These properties are less susceptible to economic downturns as they cater to everyday consumer needs. The inflation-linked rental increases further bolster its attractiveness by ensuring that rental income keeps pace with inflation, thus maintaining the real value of dividends.

Telstra’s dominance in the Australian telecommunications market provides a reliable revenue stream, supported by its extensive customer base. The company’s strategy to enhance its mobile business and expand its broadband services underpins its earnings growth. Moreover, Telstra’s commitment to delivering fully franked dividends adds significant value for income investors, particularly those seeking tax-effective income.

Transurban’s portfolio of urban toll roads spans major cities in Australia and North America, offering diversified revenue sources. The company benefits from long-term toll concessions, which provide predictable cash flows. With urbanization and traffic congestion increasing, Transurban is well-positioned to capitalize on growing demand for toll roads. The company’s focus on maintaining and upgrading its infrastructure ensures continued growth and reliable dividend payments.

Why These Stocks Are Attractive Buys

These three stocks are not only favored for their dividend yields but also for their growth potential. Charter Hall Retail REIT, Telstra Group Ltd, and Transurban Group each offer a unique value proposition that combines stability, growth, and attractive dividends. Analysts' buy ratings and price targets reflect confidence in these companies' ability to deliver strong returns.

Investors seeking reliable income with the potential for capital appreciation should consider adding these stocks to their portfolios. The combination of high dividend yields and analyst-backed growth prospects makes them standout choices in the ASX 200 index.

Charter Hall Retail REIT, Telstra Group Ltd, and Transurban Group are top picks for income investors. These stocks offer a blend of stability, attractive dividend yields, and potential for significant upside. As analysts remain optimistic about their prospects, these companies represent smart investment choices for those looking to enhance their income portfolios.