Analysts name 2 ASX dividend shares with attractive yields as buys

Analysts are tipping these dividend shares are ones to buy…

| More on:
blockletters spelling dividends bank yield

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 in the process of building an income portfolio, then you might want to look at the shares listed below.

Here's why these ASX dividend shares could be in the buy zone right now:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to consider is the Charter Hall Social Infrastructure REIT. It is a high quality real estate investment trust with a focus on properties with specialist use, limited competition, and low substitution risk.

Among its portfolio you will find bus depots, police and justice services facilities, and childcare centres. The latter is its main focus, with the Charter Hall Social Infrastructure REIT the largest owner of early learning centres in Australia. At the last count, it actively partnered with 35 high quality childcare operators.

The Charter Hall Social Infrastructure REIT was on form in FY 2021. It recently released its full year results and reported a 13.5% increase in operating earnings to $58 million. It also revealed that it ended the period with a weighted average lease expiry of 15.2 years and 73.2% of its properties on fixed rent reviews.

Goldman Sachs is a fan. It currently has a conviction buy rating and $3.81 price target on the company's shares. The broker expects its shares to provide attractive yields of ~4.5% in FY 2022 and ~4.7% in FY 2023.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share to consider is Westpac. Australia's oldest bank has returned to form this year following a tricky period during the pandemic. This led to the company reporting a bumper profit result in the first half, which has positioned it to return significant funds to investors this year.

In fact, last week the team at Goldman Sachs tipped the bank to return $5 billion to shareholders in the near future.

Commenting on changes to its earnings estimates, Goldman said: "We move our FY21E/22E/23E EPS by +0.7%/+4.3%/+7.2%, driven by i) improved balance sheet momentum, ii) lower 2H21E BDDs, and iii) our assumption of an A$5bn off-market buyback in light of its surplus capital and franking, partially offset by iv) lower NIMs, and vi) higher near term expenses."

Goldman Sachs has a buy rating and $29.93 price target on the bank's shares. It is also forecasting dividends per share of 116 cents in FY 2021, 128 cents in FY 2022, and 141 cents in FY 2023. Based on the latest Westpac share price of $25.76, this implies yields of 4.5%, 5%, and 5.5%, respectively.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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

Male hands holding Australian dollar banknotes, symbolising dividends.
Dividend Investing

Why I'd buy ASX dividend shares now before it's too late

This could be the right time to look at ASX dividend stocks.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Dividend Investing

Beat low interest rates with these ASX dividend shares

As expected, on Tuesday the Reserve Bank of Australia elected to cut the cash rate once again. And with interest…

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Dividend Investing

Dividends from ASX 200 bank shares 'looking very stretched': expert

The banks have always been a favourite choice among ASX dividend investors. But the outlook ain't great.

Read more »

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

The best ASX dividend stocks to buy right now

Brokers think these stocks are top picks for income investors right now.

Read more »

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

Here are 2 ASX income stocks with yields above 7%

These businesses offer excellent dividends for income-seekers.

Read more »

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

5 quality ASX dividend shares to buy now

Brokers have named these shares as buys. Let's see what is being recommended.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Dividend Investing

These 3 ASX dividend stocks are my favourite picks for franked passive income right now

With interest rates set to fall, these stocks are looking good to me.

Read more »

Two funeral workers with a laptop surrounded by cofins.
Broker Notes

Macquarie just forecast this ASX 300 dividend share could surge 37%. Here's why

Atop its passive income payouts, Macquarie expects this ASX dividend stock could leap 37% in a year.

Read more »