There are some quality ASX dividend shares out there that have solid dividend yields.
Interest rates are very low at the moment, making it difficult to make any interest from having cash in the bank. The Reserve Bank of Australia (RBA) doesn't expect to increase the official rate for at least a couple of years yet.
People that are focused on income can get a higher level of dividends from these two investments:
Centuria Industrial REIT (ASX: CIP)
This real estate investment trust (REIT) is Australia's largest domestic pure play industrial REIT. It's in the S&P/ASX 200 Index (ASX: XJO).
It's currently rated as a buy by the broker Ord Minnett. The broker has a price target of $3.90 on the business.
The ASX dividend share has a portfolio of high-quality industrial properties that are located in city locations across Australia and it's underpinned by a quality and diverse tenant base. The REIT has managed to achieve both capital growth and good income.
Centuria Industrial REIT recently completed external valuations of 56 of 61 of its investment properties – that's 93% of the portfolio by value. It now has 72 properties.
On a like for like basis, the portfolio valuation increased by $192 million, or 8.1% from prior book values. The total portfolio weighted average capitalisation changed by 46 basis points from 5.42% to 4.96%. Centuria Industrial REIT's net tangible assets (NTA) increased from $2.99 to $3.32 per unit.
The portfolio value increased partly because of leasing success. It has an occupancy rate of 97.7%, with a weighted average lease expiry (WALE) of 9.8 years.
The biggest recent valuation change was that the Telstra Corporation Ltd (ASX: TLS) data centre in Clayton, VIC, it increased in value by $28.3 million.
In FY21, it's expecting to pay a distribution of 17 cents per unit, which is a yield of 4.8% at the current Centuria Industrial REIT share price.
Brickworks Limited (ASX: BKW)
Brickworks is an ASX dividend share with one of the longest records. It has maintained or grown its dividend every year for over four decades.
The business has a large array of building product divisions across Australia and North America. This includes brickmakers, masonry, roofing, precast and other specialised building systems.
But there are two other assets that fund the Brickworks dividend each year.
It owns around 40% of the investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Soul Patts owns a diversified portfolio of investments that provide defensive and reliable cashflow each year. Some investments include TPG Telecom Ltd (ASX: TPW), Brickworks itself, Milton Corporation Limited (ASX: MLT) and Bki Investment Co Ltd (ASX: BKI).
Soul Patts itself is an ASX dividend share with an impressive dividend record. It has increased the dividend every year for the last two decades.
The other part of Brickworks' dividend funding is its 50% stake in a quality industrial property trust alongside Goodman Group (ASX: GMG). The partners are steadily building large warehouses on land that used to be owned by Brickworks.
Two of the biggest projects are warehouses for Coles Group Ltd (ASX: COL) and Amazon. Once these are completed over the next year or two, it should lead to a large increase of both the property portfolio value and rental cashflow.
At the Brickworks share price, it has a grossed-up dividend yield of 4.2%.
