2 ASX dividend shares that analysts rate as buys

Super Retail Group Ltd (ASX:SUL) and this ASX dividend share are highly rated by analysts. Here’s what you need to know…

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If you’re fed up with the low interest rates on offer with savings accounts and term deposits, then you might want to take a look at the countless dividend options the Australian share market has to offer.

Two such ASX dividend shares that could help you beat low rates are listed below. Here’s what you need to know about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The Charter Hall Social Infrastructure REIT could be a dividend share to consider. It is a real estate investment trust with a focus on social infrastructure. These are properties such as bus depots, police and justice services facilities, and childcare centres.

The company notes that its properties have specialist use, limited competition, and low substitution risk. They also have very long tenancies, with its weighted average lease expiry (WALE) increasing to 14 years during the first half.

Another positive during the half was its occupancy rate of 99.7%. This helped underpin a 14.1% increase in operating earnings to $29.1 million, allowing the board to upgrade its FY 2021 distribution guidance to 15.7 cents per unit. Based on the current Charter Hall Social Infrastructure share price, this represents a 4.6% yield.

Goldman Sachs currently has a buy rating and $3.45 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

Super Retail is another dividend share to look at. It is the company behind the BCF, Macpac, Rebel, and Super Cheap Auto retail brands.

Thanks to a favourable redirection in consumer spending, Super Retail has been performing very positively in FY 2021. For example, during the first half, the company reported a 23% increase in half year sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million.

Goldman Sachs appears confident that there will be more of the same in the second half. In light of this, it is expecting the company to reward shareholders with a big dividend payment in FY 2021. Its analysts are forecasting an 81 cents per share fully franked dividend. Based on the latest Super Retail share price, this represents a 6.4% yield.

The broker currently has a buy rating and $15.00 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 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.

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