With savings accounts and term deposits still offering very low interest rates, the share market arguably remains 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 help narrow things down, I’ve picked out two that are highly rated right now:
Charter Hall Social Infrastructure REIT (ASX: CQE)
The first ASX dividend share to look at is Charter Hall Social Infrastructure REIT. It is a real estate investment trust with a focus on social infrastructure properties. These include childcare centres and government properties.
Due to its properties being for specialist use, with limited competition and low substitution risk, Charter Hall Social Infrastructure REIT is able to command long tenancy agreements. This led to the company finishing the first half of FY 2021 with a weighted average lease expiry (WALE) of 14 years.
Another positive is the strong demand it is experiencing for its properties. At the end of the period, the company’s occupancy rate stood at a sky high 99.7%.
This helped underpin solid earnings and dividends growth for the half, with more of the same expected in the second. As a result, it increased its distribution guidance to 15.7 cents per share for FY 2021. Based on the current Charter Hall Social Infrastructure share price, this represents a 5.1% yield.
Goldman Sachs is positive on the company and currently has a conviction buy rating and $3.45 price target on its shares.
Super Retail Group Ltd (ASX: SUL)
Another dividend share to consider buying is Super Retail. In February, this retail conglomerate released its half year results and revealed strong growth across the company.
Super Retail reported 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 strong form allowed the Super Retail board to declare a fully franked interim dividend of 33 cents per share.
Goldman Sachs is also a fan of Super Retail and appears to believe more of the same is coming in the second half. So much so, it suspects that the company may be in a position to reward shareholders with a special dividend.
The broker is forecasting a dividend of ~81 cents per share in FY 2021. Based on the current Super Retail share price, this equates to a fully franked 6.9% yield.
Goldman Sachs has a buy rating and $15.00 price target on its shares.
These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)
Motley Fool Australia's Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.
Our team of investors think these 3 dividend stocks should be a 'must consider' for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.
Don't miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.
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 Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
- Leading brokers name 3 ASX shares to buy today – April 12, 2021 1:00pm
- ASX 200 down 0.3%: Webjet completes note offering, Xero pushes higher – April 12, 2021 12:01pm
- Why Anteotech, Credit Clear, Galaxy, & Mach7 shares are storming higher – April 12, 2021 11:38am