With savings accounts and term deposits offering 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 are rated highly are listed below. Here's what you need to know:
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 focused on social infrastructure properties. These include properties such as childcare centres and government sites.
Charter Hall Social Infrastructure REIT was on form in FY 2021. It reported a 103% increase in statutory profit to $174.1 million thanks to a strong operating performance and further increases in its property valuations.
This allowed the company to increase its distribution to 19.71 cents per share. This comprises a distribution of 15.7 cents and a special distribution of 4 cents.
Looking ahead, management has provided guidance for a distribution of 16.7 cents per share, which represents a 6.4% increase year on year. Based on the current Charter Hall Social Infrastructure REIT share price of $3.72, this will mean a yield of 4.5% for investors.
Goldman Sachs is very positive on the company. It has a buy rating and $3.81 price target on its shares. It notes the company has the balance sheet capacity to make significant acquisitions, which are not included in its guidance.
Westpac Banking Corp (ASX: WBC)
Another ASX dividend share to consider is Westpac. Thanks to Australia's solid economic recovery from the pandemic, a thriving housing market, and its material cost reduction plans, Westpac's outlook has been improving greatly.
All in all, this has analysts forecasting solid dividend growth from Australia's oldest bank in the coming years.
For example, the team at Citi has pencilled in dividends per share of $1.16 in FY 2021 and then $1.30 in FY 2022. Based on the current Westpac share price of $25.72, this will mean fully franked yields of 4.5% and 5%, respectively.
The broker also sees decent upside for its shares. Citi currently has a buy rating and $30.00 price target on Westpac's shares at present.
