Why ANZ (ASX:ANZ) and this dividend share could be buys

Is it time to buy these dividend shares?

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fingers walking up piles of coins towards bag of cash signifying asx dividend shares

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If you’re looking to add some ASX dividend shares to your portfolio next week, then the two listed below could be worth considering.

Here’s what you need to know about these top dividend shares:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The first ASX dividend share to consider is ANZ. This banking giant could be a top option for income investors with little exposure to the banking sector. This is due to its attractive valuation, cost reduction plans, and its strong balance sheet.

In addition, the team at Morgans believe the bank is well-placed to grow its dividend in the coming years. This is largely due to its focus on absolute cost reduction and the quality of its loan book.

Morgans is forecasting fully franked dividends per share of $1.45 in FY 2021 and then $1.65 in FY 2022. Based on the current ANZ share price of $27.41, this will mean yields of 5.3% and 6%, respectively.

ANZ is the broker’s top pick in the sector and has an add rating and $34.50 price target on its shares.

Charter Hall Social Infrastructure REIT (ASX: CQE)

Another ASX dividend share to look at is the Charter Hall Social Infrastructure REIT.

It is the largest Australian ASX-listed real estate investment trust that invests in social infrastructure properties. The company notes that it is focused on pursuing high quality opportunities in social infrastructure to enhance income stability, resilience and capital growth.

This includes a large number of childcare centres, Mater Misericordiae’s corporate headquarters, and the new purpose-built South Australian Emergency Services Command Centre.

The beauty of this strategy is that these properties come with very long leases and are in demand. For example, at the end of FY 2021, the company had a weighted average lease expiry (WALE) of 15.2 years and 100% occupancy.

This went down well with the team at Goldman Sachs. The broker recently put a buy rating and $3.81 price target on the company’s shares.

In FY 2022, the company is planning to pay a distribution of 16.7 cents per share. Based on the current Charter Hall Social Infrastructure REIT share price of $3.71, this will mean a 4.5% yield.

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*Returns as of January 12th 2022

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 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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