Citi rates these 2 ASX dividend shares as buys

Here are a couple of dividend shares Citi likes…

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Are you looking for dividend shares to buy next week? If you are, then you might want to look at the shares listed below that Citi rates as buys.

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

Charter Hall Long WALE REIT (ASX: CLW)

The Charter Hall Long Wale REIT manages a wide range of listed and unlisted property funds for institutional and retail investors with a focus on office, industrial, and retail sectors.

It recently added to its portfolio with the acquisition of ALE Property with Hostplus for ~$1.7 billion. ALE owns a portfolio of ~78 pub properties across the five mainland states that are all leased to ALH Group, which is part of Endeavour Group Ltd (ASX: EDV).

The team at Citi is positive on Charter Hall Long Wale REIT. It currently has a buy rating and $5.59 price target on its shares.

The broker is also forecasting dividends per share of 31 cents in FY 2022 and 32 cents in FY 2023. Based on the current Charter Hall Long Wale REIT share price of $5.04, this will mean yields of 6.15% and 6.35%, respectively.

Rio Tinto Limited (ASX: RIO)

Rio Tinto is of course one of the world’s largest miners with a portfolio of assets across a range of commodities. These include aluminium, copper, diamonds, energy, iron ore, and lithium. The latter follows the recent acquisition of the Rincon operation in Argentina for US$825 million.

Citi believes that this acquisition confirms Rio Tinto’s ambition to be a serious player in lithium/battery materials. And given the favourable outlook for lithium, this bodes well for the mining giant’s future free cash flows.

In the meantime, though, Citi expects them to be strong enough to provide investors with very generous dividends in FY 2022 and FY 2023. It is forecasting fully franked dividends per share of $9.62 and $8.03, respectively. Based on the current Rio Tinto share price of $103.63, this will mean yields of 9.3% and 7.8% over the next two years.

Citi has a buy rating and $115.00 price target on the company’s shares.

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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