2 ASX dividend shares analysts rate as buys

These dividend shares could be in the buy zone now…

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Are you looking for some dividend shares to buy? If you are, you may want to check out the highly rates shares listed below.

Here's what you need to know about these dividend shares:

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. These are properties with specialist use, limited competition, and low substitution risk. This includes properties such as bus depots, police and justice services facilities, and childcare centres.

Positively, the company has experienced strong demand for its properties, leading to a sky high occupancy rate. This underpinned a 13.5% increase in operating earnings to $58 million in FY 2021.

Another positive was its outlook. At the end of the financial year, it had 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 its future growth.

One broker that is a big fan of the company is Goldman Sachs. It currently has a conviction buy rating and $3.81 price target its shares.

In addition, based on the current Charter Hall Social Infrastructure REIT share price, the broker expects its shares to provide yields of ~4.5% in FY 2022 and ~4.7% in FY 2023.

Scentre Group (ASX: SCG)

Another ASX dividend share to look at is Scentre. It is a leading shopping centre operator and the owner of the Westfield centres in the Australian market.

Goldman Sachs is also a big fan of Scentre and believes its shares are in the buy zone right now. The broker currently has a buy rating and $3.32 price target on the company's shares.

Although its analysts acknowledge the near term uncertainty, they highlight that positive signs are emerging.

Following its recent results release, Goldman said: "All in, we believe SCG is well positioned to weather further uncertainty relating to COVID impacts and the portfolio metrics are set to re-accelerate as government restrictions ease, which we believe is evident from today's result and recent operational strength. Despite this, SCG is trading at a price discount to NTA of ~-25%."

It also notes that Scentre is far more positively leveraged to inflation than any other Australian real estate investment trusts under its coverage. This bodes well for the future given current inflation expectations.

Goldman estimates that its shares will provide dividend yields of ~5.7% in FY 2022 and ~6.5% in 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.

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