With savings accounts and term deposits still providing very low interest rates, the share market arguably remains the best place to earn a passive income.
But which ASX dividend shares should you consider buying? Two that this top broker rates highly are listed below:
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Charter Hall Social Infrastructure REIT (ASX: CQE)
The first dividend shares to look at is the Charter Hall Social Infrastructure REIT. It is a real estate investment trust focused on social infrastructure properties. These include specialist use properties with low substitution risk such as childcare centres and government properties.
The Charter Hall Social Infrastructure REIT was on form in FY 2021. The company recently released its full year results and revealed a 13.5% increase in operating earnings to $58 million. It also advised 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. Combined with its 100% occupancy rate, this bodes well for the future.
Goldman Sachs currently has a conviction buy rating and $3.81 price target on the company's shares. Furthermore, based on the current Charter Hall Social Infrastructure REIT share price of $3.60, the broker expects its shares to provide yields of ~4.6% in FY 2022 and ~4.8% in FY 2023.
National Australia Bank Ltd (ASX: NAB)
Another ASX dividend share to consider is this banking giant. It could be a good option due to the favourable outlook for the sector right now. This is thanks to Australia's strong economic recovery from the pandemic and the thriving housing market. And while current lockdowns have put a dampener on near term trading conditions, another rebound is expected once restrictions ease.
Another positive is the recent deal to acquire Citibank's Australian consumer business. This gives NAB exposure to an area it was significantly underweight and could bode well for future growth.
The team at Goldman Sachs are very positive on NAB. This is due to the bank's cost management initiatives, its position as the largest business bank, excellent margin management, and its strong capital position.
The broker has a conviction buy rating and $30.62 price target on the bank's shares. And based on the current NAB share price of $27.39, Goldman expects yields of 4.5%, 5%, and 5.3%, respectively, between FY 2021 and FY 2023.
