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 are rated highly by a top broker:
Charter Hall Social Infrastructure REIT (ASX: CQE)
The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT. This real estate investment trust has a focus on social infrastructure properties such as childcare centres and government sites.
Thanks to strong demand for these properties and favourable revaluations, the Charter Hall Social Infrastructure REIT reported a 103% increase in statutory profit to $174.1 million in FY 2021.
This allowed the company to increase its distribution to 19.71 cents per share, which comprises a distribution of 15.7 cents and a special distribution of 4 cents.
Pleasingly, management expects to grow its distribution further (excluding its special distribution) in FY 2022. It has guided to a full year distribution of 16.7 cents per share. Based on the current Charter Hall Social Infrastructure REIT share price of $3.70, this will mean a 4.5% yield.
Its result and guidance went down well with the team at Goldman Sachs. In response the broker put a buy rating and $3.81 price target on the company's shares.
South32 Ltd (ASX: S32)
Another dividend share that is highly rated is this mining giant. While many of its peers have fallen heavily recently, the South32 share price has been surging higher.
This is due to the positive outlook for the key commodities it produces. South32 has exposure to a diverse group of commodities, including alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc.
It is thanks to its exposure to aluminium that Goldman Sachs is very positive on the company. Its analysts believe the metal is in the early stages of a multi-year bull market and expect it to underpin strong free cash flows in the coming years.
So much so, Goldman believes South32's shares will provide fully franked dividend yields above 10% in FY 2022 and FY 2023.
The broker currently has a conviction buy rating and $3.80 price target on its shares. This compares to the latest South32 share price of $3.39.
