2 high-yield ASX dividend shares rated as buys

Super Retail Group Ltd (ASX:SUL) and this high yield ASX dividend share could be great options for income investors right now…

| More on:
Happy young man and woman throwing dividend cash into air in front of orange background.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're an income investor in search of dividend shares, then look no further.

Listed below are two ASX dividend shares that are highly rated. Here's what you need to know about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT.

This company appears well-positioned to grow its dividend at a consistently solid rate long into the future. This is thanks to its focus on high quality social infrastructure properties.

These properties, such as childcare centres and government properties, have specialist use, limited competition, and low substitution risk. They also come with ultra long leases and fixed rent reviews.

For example, at the end of the first half, the Charter Hall Social Infrastructure REIT had an occupancy rate of 99.7% and a weighted average lease expiry (WALE) of 14 years.

In FY 2021, the company intends to pay a distribution of 15.7 cents per unit to shareholders. Based on the current Charter Hall Social Infrastructure share price, this represents a 4.9% yield.

Goldman Sachs is a fan of the company and has a conviction buy rating and $3.45 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to consider buying is Super Retail. It is the company behind retail brands BCF, Macpac, Rebel, and Super Cheap Auto.

It has been a very positive performer during the pandemic. In February, Super Retail reported a 23% increase in half year sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million.

Management advised that this was driven by like for likes sales growth, strong online sales, and margin expansion.

Goldman Sachs is also a fan of Super Retail and expects it to have a strong second half. So much so, the broker believes the company will be in a position to pay shareholders a special dividend with its full year results.

Its analysts are forecasting an 81 cents per share fully franked dividend for FY 2021. Based on the latest Super Retail share price, this represents a 6.8% yield.

Goldman currently has a buy rating and $15.00 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing

Man smiling at a laptop because of a rising share price.
Dividend Investing

2 ASX shares that I think are buys for both growth and dividends

These businesses offer so much potential.

Read more »

Worker inspecting oil and gas pipeline.
Dividend Investing

Should I buy Woodside shares today for their 8% dividend yield?

With an 8% dividend yield and a resurgent share price, should I buy Woodside shares right now?

Read more »

A woman standing in a blue shirt smiles as she uses her mobile phone.
Dividend Investing

Buy Rio Tinto, Telstra, and this ASX dividend share

Let's see what analysts are saying about these income options.

Read more »

A man wearing glasses sits back in his desk chair with his hands behind his head staring smiling at his computer screens as the ASX share prices keep rising
Dividend Investing

1 ASX dividend stock down 25% I'd buy right now

This business offers both passive income and potential growth.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

2 ASX shares with dividend yields above 8%

These two stocks offer investors significant passive income potential.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

Dividend investors should put these 2 top ASX shares on their watchlist

These two businesses have exciting dividend potential.

Read more »

A young boy points and smiles as he eats fried chicken.
Dividend Investing

2 impressive ASX dividend shares rated as buys by brokers

These companies are sending significant passive income to shareholders.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Dividend Investing

Here's how I would build a $100,000 dividend portfolio for maximum passive income today

These ten stocks will pay you handsomely to own them...

Read more »