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

Is it time to buy these dividend shares?

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:

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

Image source: Getty Images

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.

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.

More on Dividend Investing

Woman looking at her computer and pondering something.
Dividend Investing

Insurance Australia Group vs Coles: Which ASX dividend comes out on top?

Should income investors pick Insurance Australia Group or Coles Group? Here’s how their dividends, franking, and value stack up.

Read more »

Two men in suits face off against each other in a boxing ring.
Test Only

Wesfarmers vs Woolworths: Which ASX dividend share looks better this month?

I compare Wesfarmers and Woolworths head-to-head to see which ASX dividend share is better value and income for investors right…

Read more »

A man points at a paper as he holds an alarm clock, indicating the ex-dividend date is approaching.
Dividend Investing

10 ASX shares with ex-dividend dates next week

Harvey Norman, MFF Capital Investments, WAM Capital, and other stocks go ex-div next week.

Read more »

Smiling woman listening to music and using her phone.
Dividend Investing

AGL Energy vs Wesfarmers: Which share delivers better passive income?

AGL Energy offers a bigger franked dividend yield than Wesfarmers—here's which ASX stock I'd pick for passive income.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

2 ASX passive income share ideas I'd use to generate $300 a month in 2027

These businesses are providing incredible dividend income.

Read more »

Mining vehicle at a mine site.
Dividend Investing

If I invest $10,000 in Fortescue shares, how much passive income could I earn in FY27?

Do you hold Fortescue shares in your portfolio?

Read more »

Piles of increasing coins on Australian $100 notes.
Dividend Investing

ASX ETF dividends: Global X reveals next payments

Own A300, ZYAU, BANK, or OZXX ETFs? Here's your next dividend.

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

2 great ASX dividend share buys for passive income in October

I think these investments look incredible options for dividends.

Read more »