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2 quality ASX dividend shares to buy and hold

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If you are looking for ASX dividend shares that you can buy and hold, then you might want to take a look at the ones listed below.

Here’s why they could be positioned to grow their dividends consistently over the next decade and beyond:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT. It is the largest ASX-listed real estate investment trust investing in high quality social infrastructure properties.

These properties are those with specialist use, limited competition, and low substitution risk. This includes childcare centres and government properties.

Earlier this week the company released its half year results and delivered a 14.1% increase in operating earnings to $29.1 million. It also revealed an occupancy rate of 99.7% and a very lengthy weighted average lease expiry (WALE) of 14 years. This was up 1.3 years from the end of June.

Management also advised that the number of leases on fixed rent reviews has increased to 63.3%, which bodes well for its future rental income growth.

Thanks to its strong form, the company has lifted its FY 2021 distribution guidance to 15.7 cents per unit in FY 2021. Based on the current Charter Hall Social Infrastructure share price, this represents an attractive 5.2% yield.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be a great long term option is Rural Funds. It is a real estate investment trust (REIT) that owns a diversified portfolio of high quality Australian agricultural assets

At the last count, Rural Funds’ 61 properties had a WALE of 10.9 years. Importantly, these leases include rental increases which are designed to allow the Rural Funds board to increase its distribution by 4% per annum.

This year the company intends to do precisely that and is forecasting a full year distribution of 11.28 cents per unit. Based on the current Rural Funds share price, this equates to a generous 4.5% yield.

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Returns As of 15th February 2021

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