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…

| More on:
Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Dividend Investing

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Dividend Investing

2 market-leading ASX dividend stocks to buy in April

Analysts have put buy ratings on these market-leaders.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Man holding Australian dollar notes, symbolising dividends.
ETFs

Want the latest dividend from the Vanguard Australia Shares ETF (VAS)? Here's what you have to do

If you want to bag the latest VAS dividend, here's what you need to do.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Dividend Investing

Investing for passive income? Keep any eye out for that boosted Telstra dividend today!

If you own Telstra shares, keep an eye out for that juicy dividend payout today.

Read more »

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Dividend Investing

Invest $12,000 in Woodside stock and get $5,700 in passive income

Reliable dividend shares are everywhere on the ASX. Here's how you could use that to your advantage.

Read more »

Australian dollar notes in businessman pocket suit, symbolising ex dividend day.
Dividend Investing

3 ASX 300 dividend shares to buy in April

These shares have been named as buys by brokers and tipped to offer very attractive yields.

Read more »

A couple of friends at a rooftop party enjoying some hot and tasty Domino's pizza
Dividend Investing

Own Domino's shares? Today is pay day!

Eligible Domino’s shareholders can expect some welcome passive income today.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Opinions

3 top income-focused ASX shares to buy before April

I'd bolster my income by buying these dividend-payers before the next month rolls around.

Read more »