Although the outlook for interest rates is improving, it is still likely to be some time until rates rise to a sufficient level to earn an income from them.
In light of this, the share market arguably remains the best place to earn a passive income.
But which ASX dividend shares should you consider buying? Two to look at are listed below:
Centuria Industrial REIT (ASX: CIP)
The first option for income investors to consider is Centuria Industrial. This industrial focused property company has built a portfolio of quality assets aiming to deliver income and capital growth for investors.
Centuria Industrial has also just added to its portfolio through the $351.3 million acquisition of eight freehold urban infill industrial assets. These assets provide the company with exposure to attractive industrial sub-sectors including distribution centres, cold storage, and transport logistics.
This went down well with the team at Macquarie. In response, the broker retained its outperform rating and lifted its price target to $4.22.
Macquarie is also forecasting a 17.3 cents per share distribution in FY 2022 and an 18.4 cents per share distribution in FY 2023. Based on the current Centuria Industrial share price of $3.63, this will mean yields of 4.7% and 5%.
Super Retail Group Ltd (ASX: SUL)
Another ASX dividend share to consider is this retail conglomerate. It could be a top option due to the quality of its BCF, Macpac, Rebel, and Super Cheap Auto brands and their positive long term outlooks.
The popularity and strength of these brands allowed Super Retail to take advantage of favourable trading conditions and deliver a stellar result in FY 2021. Super Retail reported a 22% increase in sales to $3.45 billion and a 107% jump in normalised net profit after tax to $306.8 million.
And while extended lockdowns will make it hard for Super Retail to top this in FY 2022, one leading broker still expects generous dividends in the near term.
The team at Citi recently retained their buy rating and lifted their price target to $16.00. The broker is also now forecasting fully franked dividends per share of 67 cents in FY 2022 and 64.5 cents in FY 2023. Based on the current Super Retail share price of $13.09, this will mean yields of 5.1% and 4.9%, respectively.
