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2 highly rated ASX dividend shares to buy

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Are you looking to boost your portfolio with some income options?

Then you might want to take a look at the ASX dividend shares listed below. Here’s what you need to know about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

Charter Hall Social Infrastructure REIT is the largest ASX-listed real estate investment trust investing in social infrastructure properties.

The company targets ongoing capital growth through its focus on high quality assets in strategic locations with specialist use, limited competition, low substitution risk. These assets include childcare centres and government properties. Management believes this focus will drive high tenant retention rates over the long term.

One broker that is a fan of Charter Hall Social Infrastructure REIT is Goldman Sachs. It has a conviction buy rating and $3.35 price target on its shares. The broker is forecasting a 15 cents per share dividend in FY 2021. Based on the current Charter Hall Social Infrastructure REIT share price, this represents a 4.9% yield.

Telstra Corporation Ltd (ASX: TLS)

Over the last few years, this telco giant has been forced to reduce its dividend on a number of occasions due to the negative impact that the NBN rollout was having on its earnings.

The good news is that the dividend cuts now appear to be over and brokers are forecasting a stable 16 cents per share fully franked dividend for the foreseeable future.

This is being underpinned by the success of its T22 strategy, which is reducing costs and simplifying its business. In addition to this, the arrival of 5G internet is expected to give its average mobile revenue per user metric a boost in the coming years.

One broker that is positive on the company is UBS. It has a buy rating and $3.70 price target on its shares and is forecasting a 16 cents per share dividend. This equates to a 5.2% dividend yield.

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Returns As of 6th October 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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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