Citi rates these 2 ASX dividend shares as buys

Here are a couple of dividend shares Citi likes…

| More on:
Couple counting out money

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

More on Dividend Investing

A mature-aged couple high-five each other as they celebrate a financial win and early retirement
Dividend Investing

5 top ASX dividend shares to buy right now

Analysts think income investors should be loading up on these shares.

Read more »

Two adults and a child look happy as they walk through airport with child sitting on suitcase.
Dividend Investing

Will Qantas shares pay a dividend in 2024?

Will the dividends return this year? Let's find out.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Dividend Investing

2 market-leading ASX dividend stocks to buy in April

Analysts have put buy ratings on these market-leaders.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Man holding Australian dollar notes, symbolising dividends.
ETFs

Want the latest dividend from the Vanguard Australia Shares ETF (VAS)? Here's what you have to do

If you want to bag the latest VAS dividend, here's what you need to do.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Dividend Investing

Investing for passive income? Keep any eye out for that boosted Telstra dividend today!

If you own Telstra shares, keep an eye out for that juicy dividend payout today.

Read more »

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Dividend Investing

Invest $12,000 in Woodside stock and get $5,700 in passive income

Reliable dividend shares are everywhere on the ASX. Here's how you could use that to your advantage.

Read more »

Australian dollar notes in businessman pocket suit, symbolising ex dividend day.
Dividend Investing

3 ASX 300 dividend shares to buy in April

These shares have been named as buys by brokers and tipped to offer very attractive yields.

Read more »