These 2 high-yielding ASX dividend shares are rated as buys by brokers

Some ASX shares with high dividend yields are rated as buys by brokers. Dividend shares are in higher demand these …

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Some ASX shares with high dividend yields are rated as buys by brokers.

Dividend shares are in higher demand these days with the official Reserve Bank of Australia (RBA) cash rate at almost 0%.

The below two businesses have picked by brokers as buys that also have higher yields:

dividend share

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Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT) that is managed by Charter Hall Group (ASX: CHC). The aim of the REIT is to have a portfolio of properties that have long rental lease contracts. At the latest update, the REIT had a weighted average lease expiry (WALE) of 13.8 years after announcing some acquisitions last month.

Those acquisitions, which included two ATO buildings, increased the occupancy rate to 97.7% and the weighted average rent review (WARR) to 2.3%.

After the acquisitions, 31% of the ASX dividend share's portfolio is long WALE retail, 22% is industrial, 27% is office, 16% is social infrastructure and 5% is agri-logistics. Those properties are spread right across Australia, as well as a small amount in New Zealand.

Some of the major tenants include Australian government entities, Telstra Corporation Ltd (ASX: TLS), BP, Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), David Jones and Metcash Limited (ASX: MTS).

Charter Hall Long WALE REIT has increased its distribution each year since it listed in 2016, including through the COVID-19 year of 2020.

It's currently rated as a buy by Citi, which believes that Charter Hall Long WALE REIT will pay a distribution yield of 6.3%.

Inghams Group Ltd (ASX: ING)

Inghams is a large poultry business. In the first six months of FY21, its group core poultry volume was 224.6kt (up 4%).

The company recently increased its profit guidance because of its operating performance. It's now expecting underlying earnings before interest, tax, depreciation and amortisation (EBITDA) (pre AASB16) to be in a range of $203 million to $213 million. Underlying net profit after tax (NPAT) (pre AASB16) is expected to be between $96 million to $103 million.

In the FY21 half-year result it said that its underlying EBITDA (pre AASB 16) was up 9.8% to $100.7 million and underlying net profit was up 10.7% to $46.5 million.

In terms of the dividend, Inghams increased it by 2.7% to 7.5 cents per share in the half-year result. Citi also rates Inghams as a buy, it's expecting Inghams to pay a grossed-up dividend yield of 6.1%.

The ASX dividend share's board recently revised its dividend policy payout ratio to between 60% to 80% of underlying net profit.

Inghams said it will continue to focus on the execution of its five-year strategy to deliver more consistent, predictable and reliable returns to shareholders.

The company said the net impact of lower feed prices is expected to be modest in the second half of FY21, given the recent surge in international demand and its customer cost pass through mechanisms.

There is ongoing volatility remaining because of COVID-19 and the potential re-opening of some Australian export markets.

According to Citi, the Inghams share price is valued at 18x FY21's estimated earnings.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET and Telstra Corporation 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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