Analysts name 2 ASX dividend shares with attractive yields as buys

Analysts are tipping these dividend shares are ones to buy…

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If you're in the process of building an income portfolio, then you might want to look at the shares listed below.

Here's why these ASX dividend shares could be in the buy zone right now:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to consider is the Charter Hall Social Infrastructure REIT. It is a high quality real estate investment trust with a focus on properties with specialist use, limited competition, and low substitution risk.

Among its portfolio you will find bus depots, police and justice services facilities, and childcare centres. The latter is its main focus, with the Charter Hall Social Infrastructure REIT the largest owner of early learning centres in Australia. At the last count, it actively partnered with 35 high quality childcare operators.

The Charter Hall Social Infrastructure REIT was on form in FY 2021. It recently released its full year results and reported a 13.5% increase in operating earnings to $58 million. It also revealed that it ended the period with a weighted average lease expiry of 15.2 years and 73.2% of its properties on fixed rent reviews.

Goldman Sachs is a fan. It currently has a conviction buy rating and $3.81 price target on the company's shares. The broker expects its shares to provide attractive yields of ~4.5% in FY 2022 and ~4.7% in FY 2023.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share to consider is Westpac. Australia's oldest bank has returned to form this year following a tricky period during the pandemic. This led to the company reporting a bumper profit result in the first half, which has positioned it to return significant funds to investors this year.

In fact, last week the team at Goldman Sachs tipped the bank to return $5 billion to shareholders in the near future.

Commenting on changes to its earnings estimates, Goldman said: "We move our FY21E/22E/23E EPS by +0.7%/+4.3%/+7.2%, driven by i) improved balance sheet momentum, ii) lower 2H21E BDDs, and iii) our assumption of an A$5bn off-market buyback in light of its surplus capital and franking, partially offset by iv) lower NIMs, and vi) higher near term expenses."

Goldman Sachs has a buy rating and $29.93 price target on the bank's shares. It is also forecasting dividends per share of 116 cents in FY 2021, 128 cents in FY 2022, and 141 cents in FY 2023. Based on the latest Westpac share price of $25.76, this implies yields of 4.5%, 5%, and 5.5%, respectively.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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