The good news for income investors in this low interest rate environment, is that there are countless dividend shares for investors to choose from on the Australian share market.
But with so many to choose from, it can be hard to decide which ones to buy. To narrow things down, listed below are two ASX dividend shares that are rated highly by analysts. They are as follows:
Adairs Ltd (ASX: ADH)
The first ASX dividend share to look at is Adairs. It is a leading retailer of furniture, homewares, and home furnishings in Australia and New Zealand.
Thanks to its strong market position and omni-channel footprint, which gives it exposure to both online and in-store growth, Adairs has been tipped to grow at a solid rate over the 2020s.
This will also be boosted by the recent agreement to acquire Focus on Furniture for $80 million. Management believes the acquisition is a clear strategic fit, with attractive growth potential and exposure to the $8.3 billion bulky furniture category.
The team at Morgans is a fan of the deal. In response, the broker retained its add rating and lifted its price target to $4.80.
As for dividends, the broker has pencilled in fully franked dividends per share of 23 cents in FY 2022 and then 29 cents in FY 2023. Based on the current Adairs share price of $3.92, this will mean yield of 5.9% and 7.4%, respectively.
Charter Hall Social Infrastructure REIT (ASX: CQE)
Another ASX dividend share to look at is the Charter Hall Social Infrastructure REIT.
The Charter Hall Social Infrastructure REIT is a real estate investment trust that invests in social infrastructure properties. These are properties with low competition and substitution risk and long leases such as childcare centres and government sites.
Demand for its properties has been very strong, leading to a sky high occupancy rate, favourable revaluations, ultimately and strong profit growth. For example, in FY 2021, the company reported a 103% increase in statutory profit to $174.1 million.
Goldman Sachs is very positive on its future. So much so, earlier this week the broker reiterated its conviction buy rating and lifted its price target to $4.12.
Its analysts are also forecasting dividends per share of 16.9 cents in FY 2022 and then 17.6 cents in FY 2023. Based on the current Charter Hall Social Infrastructure REIT share price of $3.84, this will mean yields of 4.4% and 4.6%, respectively.
