Analysts name 2 ASX dividend shares to buy in January

Here are two dividend shares analysts rate highly…

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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.

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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.

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