Analysts name 2 growing ASX dividend shares to buy

Analysts expect these dividends to keep growing…

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With savings accounts and term deposits still offering very low interest rates, the share market arguably remains the best place to earn a passive income.

But with so many dividend shares to choose from, it can be hard to decide which ones to buy.

To help narrow things down, I've picked out two that are highly rated right now. They are as follows:

ASX dividend shares represented by cash in jeans back pocket

Image source: Getty Images

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT. It is a real estate investment trust with a focus on social infrastructure properties.

Demand for its properties has been very strong, leading to the company recently reporting an occupancy rate of 99.7%. But perhaps the best thing is that these tenants are locked in for the long term, with the Charter Hall Social Infrastructure REIT boasting a weighted average lease expiry (WALE) of over 14 years.

And with around two-thirds of its leases on fixed rent reviews, this bodes well for its rental income growth over the next decade.

Goldman Sachs is positive on the company. It currently has a conviction buy rating and $3.84 price target on its shares. At the current price, Goldman is forecasting yields growing from ~4.5% in FY 2021 to well beyond 5% in FY 2022 and FY 2023.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to look at is this supermarket operator. It could be a top option for investors due to its very positive long term outlook for earnings and dividend growth.

This is being underpinned by its Refresh Strategy, which is cutting costs, making Coles more efficient, improving its use of technology, and boosting its online business and distribution.

Goldman Sachs is also very positive on Coles and has a buy rating and $19.40 price target on its shares.

Its team are forecasting solid earnings and dividend growth over the medium term. In respect to dividends, the broker expects dividends per share of 62 cents in FY 2021, 67 cents in FY 2022, and 73 cents in FY 2023. Based on the latest Coles share price of $18.12, this will mean fully franked yields of 3.4%, 3.7%, and 4%, respectively.

Motley Fool contributor James Mickleboro 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. 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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