Analysts name 2 growing ASX dividend shares to buy

Analysts expect these dividends to keep growing…

| More on:

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

With savings accounts and term deposits still offering very low interest rates, the share market arguably remains the best place to earn a passive income.

But with so many dividend shares to choose from, it can be hard to decide which ones to buy.

To help narrow things down, I've picked out two that are highly rated right now. They are as follows:

ASX dividend shares represented by cash in jeans back pocket

Image source: Getty Images

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT. It is a real estate investment trust with a focus on social infrastructure properties.

Demand for its properties has been very strong, leading to the company recently reporting an occupancy rate of 99.7%. But perhaps the best thing is that these tenants are locked in for the long term, with the Charter Hall Social Infrastructure REIT boasting a weighted average lease expiry (WALE) of over 14 years.

And with around two-thirds of its leases on fixed rent reviews, this bodes well for its rental income growth over the next decade.

Goldman Sachs is positive on the company. It currently has a conviction buy rating and $3.84 price target on its shares. At the current price, Goldman is forecasting yields growing from ~4.5% in FY 2021 to well beyond 5% in FY 2022 and FY 2023.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to look at is this supermarket operator. It could be a top option for investors due to its very positive long term outlook for earnings and dividend growth.

This is being underpinned by its Refresh Strategy, which is cutting costs, making Coles more efficient, improving its use of technology, and boosting its online business and distribution.

Goldman Sachs is also very positive on Coles and has a buy rating and $19.40 price target on its shares.

Its team are forecasting solid earnings and dividend growth over the medium term. In respect to dividends, the broker expects dividends per share of 62 cents in FY 2021, 67 cents in FY 2022, and 73 cents in FY 2023. Based on the latest Coles share price of $18.12, this will mean fully franked yields of 3.4%, 3.7%, and 4%, respectively.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. 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

Two plants grow in jars filled with coins.
Dividend Investing

You won't believe this ASX stock's dividend growth

The 4.15% yield is just the start.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

2 ASX dividend shares with 5%+ yields and buy ratings

Let's see which shares brokers are tipping as buys for income investors.

Read more »

An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted.
Dividend Investing

Where to invest $20,000 for dividend income on the ASX

Brokers think these stocks would be great picks for income investors.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

These 3 ASX stocks are paying better than 7% dividend yields

Looking for strong returns? Look no further.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

An ASX dividend stalwart every Australian should consider buying

This business provides significant defensive and income appeal.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Passive income investors: These 3 ASX dividend shares pay 5% to 6%

These may not have the highest yield, but I'd pick them first.

Read more »

Person handing out $50 notes, symbolising ex-dividend date.
Dividend Investing

2 ASX shares with dividend yields above 8%

Looking for big passive income? These are two great options.

Read more »

A wad of $100 bills of Australian currency lies stashed in a bird's nest.
Dividend Investing

3 of the best dividend ASX ETFs right now

These funds offer yields over 4%.

Read more »