2 ASX dividend shares to buy for 2021

People Infrastructure Ltd (ASX:PPE) and this ASX dividend share could be the ones to buy for income in 2021…

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Are you looking for some dividend options for your portfolio in 2021? Then check out the two ASX shares listed below.

Here's why these ASX dividend shares have been tipped to as buys for next year:

Charter Hall Social Infrastructure REIT (ASX: CQE)

Charter Hall Social Infrastructure REIT is an Australian ASX-listed real estate investment trust with a focus on social infrastructure properties. Management is targeting ongoing capital growth by investing in assets with specialist use, limited competition, and low substitution risk.

An example of this is its recent $122.5 million acquisition of a property that is under construction and will be the new corporate headquarters of Mater Misericordiae. This is Queensland's largest Catholic not-for-profit health provider.

It is also thanks to this focus that the Charter Hall Social Infrastructure REIT enjoys such a high occupancy rate and long leases. At the end of FY 2020, it had a 99.5% occupancy rate for its 395 properties and a weighted average lease expiry (WALE) of 12.7 years.

Goldman Sachs is a fan of the company and has a conviction buy rating and $3.35 price target on its shares. The broker is expecting a 15 cents per share dividend in FY 2021. Based on the latest Charter Hall Social Infrastructure REIT share price, this represents a 4.5% yield.

People Infrastructure Ltd (ASX: PPE)

People Infrastructure is a leading workforce management company. It provides companies with innovative solutions to workforce challenges.

It was a strong performer in FY 2020 despite facing headings from the pandemic. For the 12 months ended 30 June, People Infrastructure reported an impressive 49.2% increase in normalised EBITDA to $26.4 million.

While no guidance has been given for FY 2021, analysts at Morgans appear very positive on its prospects. The broker recently put an add rating and $4.05 price target on its shares. In addition to this, it is forecasting a dividend of 11 cents per share this year.

Based on the latest People Infrastructure share price, this will mean a fully franked 3.2% dividend yield.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of People Infrastructure Ltd. The Motley Fool Australia has recommended People Infrastructure Ltd. 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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