2 highly rated ASX dividend shares with generous yields

Australia and New Zealand Banking GrpLtd (ASX:ANZ) and this highly rated ASX dividend share offer generous yields to investors…

| More on:
ASX dividend shares represented by cash in jeans back pocket

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

One thing the Australian share market is not short of is dividend shares. But with so many to choose from, it can be hard to decide which ones to buy.

To help narrow things down, I have picked out two highly rated dividend shares. They are as follows:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

Although the big four banks have rallied strongly from their 2020 lows, it may not be too late to invest.

Especially given the ever-improving outlook for the sector. With the Royal Commission a distant memory, the housing market booming, and responsible lending rules eased, ANZ and the rest of the big four look well-placed for growth in the coming years.

Morgans is positive on ANZ bank and currently has an add rating and $31.00 price target on its shares.

The broker is also forecasting a $1.45 per share dividend in FY 2021 and a $1.61 per share dividend in FY 2022. Based on the current ANZ share price, this represents fully franked yields of 5.1% and 5.6%, respectively.

Charter Hall Social Infrastructure REIT (ASX: CQE)

Another ASX dividend share to consider buying is the Charter Hall Social Infrastructure REIT.

This real estate investment trust has a focus on social infrastructure properties. This means properties such as childcare centres and government buildings, which have specialist use and low substitution risk.

The properties also generally come with ultra-long tenancies and fixed rent reviews. For example, at the end of the first half, the Charter Hall Social Infrastructure REIT had a weighted average lease expiry (WALE) of 14 years and 63.3% of its leases on fixed rent reviews. This gives the company great visibility on its future earnings and distributions.

In respect to the latter, in FY 2021 the company intends to increase its distribution to 15.7 cents per unit. Based on the current Charter Hall Social Infrastructure share price, this represents a 5% yield.

Goldman Sachs is a big fan of the company. Its analysts currently have a conviction buy rating and $3.45 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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

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

Buy these excellent ASX dividend stocks for a big income boost

Brokers think these stocks could be top picks for income investors.

Read more »

A smartly-dressed businesswoman walks outside while making a trade on her mobile phone.
Dividend Investing

Here's the Telstra dividend forecast through to 2028

Let's see where the telco giant's dividend could be heading.

Read more »

Woman smiling with her hands behind her back on her couch, symbolising passive income.
Dividend Investing

My ASX share portfolio's yield is 1.8%. Here's why I'm ok with that

A small dividend yield is not a bad thing.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Dividend Investing

Brokers name the ASX dividend shares to buy in June

Let's see what they are saying about these shares.

Read more »

Married elderly man and woman in love spending time together on bench on a phone, symbolising retirement.
Dividend Investing

Why I think these 2 ASX dividend stocks are top buys for retirees

These stocks offer investors a pleasing level of resilience and dividends.

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
Dividend Investing

3 growing ASX dividend stocks to buy now

Analysts are expecting these stock to paying growing dividends.

Read more »

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

Where I'd invest $5,000 into ASX dividend shares right now

These two stocks look irresistible to me.

Read more »

Smiling business woman calculates tax at desk in office.
Dividend Investing

Turn tax return into passive income with these ASX dividend shares

These options can bring solid returns through passive income. 

Read more »