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Highlights

  • Harvey Norman tipped for 5%+ dividend yields backed by AI growth and property strength.

  • Steadfast praised for resilient model and forecast dividend growth in a favourable insurance market.

  • Both stocks carry ‘buy’ ratings with upside price targets from major brokers.

Income-focused investors have reason to be optimistic, with analysts spotlighting two ASX 200 dividend shares that stand out for their robust yields and compelling long-term outlooks. Harvey Norman Holdings Limited (ASX:HVN) and Steadfast Group Ltd (ASX:SDF) have both earned buy ratings from leading brokerages and are being positioned as top picks for income seekers this week.

Harvey Norman Holdings (ASX:HVN)

Retail giant Harvey Norman is being backed by Bell Potter as a compelling dividend investment. With a vast footprint in household and consumer electronics across both Australia and international markets, the company is set to benefit from several growth catalysts.

Bell Potter sees significant upside in Harvey Norman’s valuation, which currently trades at approximately 15 times forward earnings. Analysts note that the company is poised to benefit from a surge in demand tied to artificial intelligence-driven tech upgrades, especially as consumers replace or enhance devices in response to AI advancements.

Further, Harvey Norman's growing presence in key UK markets and its position as Australia’s largest single property owner—managing a $4.4 billion global real estate portfolio—add to its earnings potential.

Income investors are also likely to be pleased by the fully franked dividend forecasts. Bell Potter expects payouts of 25.4 cents per share in FY25 and 28.1 cents in FY26. At the current share price of $5.04, this equates to attractive yields of 5% and 5.6% respectively. The broker has issued a buy rating with a 12-month price target of $6.00.

Steadfast Group Ltd (ASX: SDF)

Meanwhile, Goldman Sachs has highlighted insurance brokerage firm Steadfast Group as another ASX 200 dividend stock to consider. The company, which operates a broad network of brokers catering primarily to small and medium-sized enterprises, is well-positioned in a supportive market environment.

Goldman Sachs points to several structural advantages, including steady premium rate growth, minimal underwriting exposure, and potential for earnings-accretive acquisitions—particularly in the unlisted and offshore spaces. The broker also praised the company’s defensive business model, noting its resilience during broader economic volatility.

Dividends from Steadfast are expected to grow, with Goldman forecasting fully franked distributions of 20 cents per share in FY25 and 22 cents in FY26. Based on the current share price of $5.77, these forecasts represent dividend yields of 3.5% and 3.8%, respectively. Goldman has assigned a buy rating to Steadfast shares with a price target of $6.50.