With interest rates and term deposits still at ultra low levels, the share market continues to be the best place to earn a passive income.
However, with so many dividend shares to choose from, it can be hard to decide which ones to buy. To narrow things down, I've picked out two that come highly rated:
Charter Hall Social Infrastructure REIT (ASX: CQE)
The Charter Hall Social Infrastructure REIT could be a dividend share to buy. This real estate investment trust has a focus on high quality social infrastructure properties. These are properties with specialist use, limited competition, and low substitution risk. In other words, properties that are likely to remain occupied by their tenants for a very long time.
In fact, this can be seen in its weighted average lease expiry (WALE). Last month the company released its half year results. As well as reporting a 14.1% increase in operating earnings to $29.1 million, management revealed an occupancy rate of 99.7% and a WALE of 14 years.
In addition to this, the company increased its FY 2021 distribution guidance to 15.7 cents per unit. Based on the latest Charter Hall Social Infrastructure share price, this represents a 5.25% yield.
Goldman Sachs was impressed and has put a conviction buy rating and $3.45 price target on its shares.
Super Retail Group Ltd (ASX: SUL)
Super Retail is another ASX dividend share that could be in the buy zone. It is the company behind retail store brands BCF, Macpac, Rebel, and the eponymous Super Cheap Auto.
Like Charter Hall Social Infrastructure, it has been performing positively in FY 2021. Last month Super Retail released its half year results, which revealed a 23% increase in sales to $1.78 billion and a massive 139% increase in underlying net profit after tax to $177.1 million. This was driven by solid growth across the company's store network and its online businesses.
This strong performance allowed Super Retail to declare a fully franked dividend of 33 cents per share.
Goldman Sachs is also positive on Super Retail and currently has a buy rating and $15.00 price target on its shares. The broker has even suggested that a special dividend could be announced with its full year results, bringing its FY 2021 to a total of 81 cents per share. This represents a fully franked 7.2% yield.
