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 by the gains of ASX mining shares

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

Three colleagues stare at a computer screen with serious looks on their faces.
Dividend Investing

‘Exciting’ ASX 200 dividend share expected to deliver material returns: expert

Investors seeking income stocks need to do more than simply look at what the companies paid out over the past…

Read more »

A man wearing glasses and a purple vest holds his hand to his chin and wonders
Resources Shares

Are Fortescue shares a buy for income or are they a dividend trap?

Are Fortescue shares a 15.5% dividend trap right now?

Read more »

businessman handing $100 note to another in supermarket aisle representing woolworths share price
Dividend Investing

Guess how much Woolworths shares have paid in dividends over the last 5 years

Those who have been invested in Woolworths shares over the last half-decade can pat themselves on the back.

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Dividend Investing

Brokers name 2 ASX dividend shares to buy

Brokers have named these dividend shares as buys...

Read more »

Happy young man and woman throwing dividend cash into air in front of orange background
Dividend Investing

Time is running out to secure the Rio Tinto dividend. Here’s what you need to do

Investors have until the market close on Wednesday to lock in Rio Tinto's latest dividend.

Read more »

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today
Dividend Investing

Here’s the Whitehaven Coal dividend forecast through to 2024

Will Whitehaven Coal pay big dividends to investors?

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

Analysts say these ASX dividend shares are top buys

These dividend shares have been named as buys by analysts...

Read more »

Three people leaping in celebration against a blue sky.
Dividend Investing

Own Westpac shares? This broker expects the bank’s dividends to surge 10% by FY23  

Morgan Stanley sees blue skies ahead for the Westpac dividend.

Read more »