Analysts name 2 ASX dividend shares to buy in January

Here are two dividend shares analysts rate highly…

| More on:
An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted.

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

If you're on the lookout for some dividend options in January, then you may want to look at the ASX shares listed below.

Here's why analysts rate them as buys:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share to look at is baby products retailer Baby Bunting.

It has been tipped as a share to buy due to its leadership position in a less discretionary retail category which benefits from ~300,000 births a year in Australia.

Citi is a fan of the company and believes it has strong growth potential over the medium term thanks partly to its store rollout. It also sees opportunities to boost its earnings from private label growth and supply chain efficiencies.

The broker explained: "We reiterate our Buy rating and see the company having a range of multi-year growth strategies including rollout (target of 110+ stores, with 68 expected by end of FY22e), exclusive/private label growth and supply chain efficiencies."

As for dividends, Citi expects fully franked dividends per share of 16 cents in FY 2022 and 20 cents in FY 2023. Based on the current Baby Bunting share price of $5.25, this will mean yields of 3% and 3.8%, respectively.

Charter Hall Social Infrastructure REIT (ASX: CQE)

Another ASX dividend share that is highly rated is the Charter Hall Social Infrastructure REIT.

It is a property company with a focus on social infrastructure properties. This includes government facilities, healthcare buildings, and childcare centres. In respect to the latter, Charter Hall Social Infrastructure REIT is Australia's largest owner of early learning centres. It actively partners with 37 high quality childcare operators to provide an integrated service offering.

These properties are in high demand, which underpinned a 100% occupancy rate and a weighted average lease expiry (WALE) in excess of 15 years in FY 2021. And with approximately three-quarters of its tenancies on fixed rent reviews, the company's future growth looks very positive.

Goldman Sachs is a fan of the Charter Hall Social Infrastructure REIT. It currently has a conviction buy rating and $4.13 price target on its shares.

Following a recent acquisition, the broker said: "The acquisitions solidify our view that the REIT is positioned for a solid growth outlook given its strong balance sheet with headroom and liquidity to pursue investment opportunities on the back of recent solid asset valuations."

In respect to dividends, Goldman is forecasting dividends per share of 17.1 cents in FY 2022 and 17.5 cents in FY 2023. This implies yields of 4.3% and 4.4%, respectively.

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 recommended Baby Bunting. 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 »