2 buy-rated ASX dividend shares with generous yields

Australia and New Zealand Banking GrpLtd (ASX:ANZ) and this buy-rated ASX dividend share offer investors generous yields…

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

Both of these dividend shares offer investors generous yields. Here’s what you need to know about them:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The last few years have been difficult for ANZ and the rest of the big four banks. The Royal Commission, the housing market downturn, and the pandemic all weighed heavily on their performances.

Positively, all three of these headwinds are now out of the way, putting ANZ in a position to return to growth again. This should be supported by the relaxing of responsible lending rules and the booming housing market.

One broker that is positive on the bank is Morgans. It recently reiterated its add rating and lifted the price target on the company’s shares to $31.00. This compares to the current ANZ share price of $28.74.

Morgans is also forecasting a $1.45 per share dividend in FY 2021 and a $1.61 per share dividend in FY 2022. Based on the current ANZ share price, this represents fully franked yields of 5% and 5.5%, respectively.

Charter Hall Social Infrastructure REIT (ASX: CQE)

A second ASX dividend share to consider buying is the Charter Hall Social Infrastructure REIT. As its name implies, this real estate investment trust is focused on high quality social infrastructure properties. This includes properties with specialist use such as childcare centres and government buildings.

These are great properties to own. Not only do they have limited competition and low substitution risk, they have very long leases. For example, at the end of the first half of FY 2021, the company’s portfolio was 99.7% leased with a weighted average lease expiry (WALE) of 14 years.

Another positive was the increasing number of leases on fixed rent reviews. This metric has increased to 63.3% from 53.6% at the end of June. This bodes well for its future growth.

This strong form allowed the company to increase its FY 2021 distribution guidance to 15.7 cents per unit. Based on the current Charter Hall Social Infrastructure share price, this represents a 4.85% yield.

One broker that is a fan is Goldman Sachs. It currently has a conviction buy rating and $3.45 price target on its shares.

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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 has no position in any of the stocks mentioned. 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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