Top broker names 2 ASX dividend shares to buy

These dividend shares could be buys for income investors…

| More on:
A white and black clock face is shown with three hands saying Time to Buy reflecting Citi's view that it's time to buy ASX 200 banks

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

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

But which ASX dividend shares should you consider buying? Two that this top broker rates highly are listed below:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first dividend shares to look at is the Charter Hall Social Infrastructure REIT. It is a real estate investment trust focused on social infrastructure properties. These include specialist use properties with low substitution risk such as childcare centres and government properties.

The Charter Hall Social Infrastructure REIT was on form in FY 2021. The company recently released its full year results and revealed a 13.5% increase in operating earnings to $58 million. It also advised 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. Combined with its 100% occupancy rate, this bodes well for the future.

Goldman Sachs currently has a conviction buy rating and $3.81 price target on the company's shares. Furthermore, based on the current Charter Hall Social Infrastructure REIT share price of $3.60, the broker expects its shares to provide yields of ~4.6% in FY 2022 and ~4.8% in FY 2023.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share to consider is this banking giant. It could be a good option due to the favourable outlook for the sector right now. This is thanks to Australia's strong economic recovery from the pandemic and the thriving housing market. And while current lockdowns have put a dampener on near term trading conditions, another rebound is expected once restrictions ease.

Another positive is the recent deal to acquire Citibank's Australian consumer business. This gives NAB exposure to an area it was significantly underweight and could bode well for future growth.

The team at Goldman Sachs are very positive on NAB. This is due to the bank's cost management initiatives, its position as the largest business bank, excellent margin management, and its strong capital position.

The broker has a conviction buy rating and $30.62 price target on the bank's shares. And based on the current NAB share price of $27.39, Goldman expects yields of 4.5%, 5%, and 5.3%, respectively, between FY 2021 and FY 2023.

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 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

A man closesly watch a clock, indicating a delay or timing issue on an ASX share price movement
Dividend Investing

Little time left to snap up the next dividend from ANZ shares

ANZ shares will pay an interim dividend of 83 cents per share on 1 July.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Dividend Investing

3 excellent ASX dividend stocks to buy with $3,000

Analysts believe these shares could be quality picks for Aussie income investors.

Read more »

A man smiles as he holds bank notes in front of a laptop.
Dividend Investing

Overinvested in Fortescue? Here are two alternative ASX dividend shares

Here are other ideas beyond Fortescue offering large dividends.

Read more »

Engineer on a laptop.
Dividend Investing

1 ASX dividend stock down 28% I'd buy right now

This stock is a powerful pick for passive income.

Read more »

The sea's vastness is rivalled only by the refreshing feel of the drinks two friends share as they saunter along its edge, symbolising passive income.
Dividend Investing

Which ASX 200 bank stock pays the most passive income?

What’s the best ASX 200 bank to invest for passive income?

Read more »

A man looking at his laptop and thinking.
Dividend Investing

Here's the ANZ dividend forecast through to 2027

It looks like we might have seen the peak for this bank's dividends.

Read more »

A smiling woman holds a Facebook like sign above her head.
Dividend Investing

Bell Potter names the best ASX dividend shares to buy in May

Bell Potter thinks these are among the best shares for income investors to buy right now.

Read more »

A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.
Dividend Investing

Hoping to bank the next dividend from NAB shares? Better hurry…

NAB shares will pay an interim dividend of 85 cents per share next month.

Read more »