While the outlook for interest rates is certainly improving, it looks likely to still be some time until rates reach levels that investors could earn a sufficient income from savings accounts and term deposits.
In light of this, the dividend shares listed below could be top options for income investors for the foreseeable future. Here's what you need to know about them:
Charter Hall Social Infrastructure REIT (ASX: CQE)
The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT. As its name implies, this real estate investment trust invests in social infrastructure properties. These properties, which are on very long leases, include bus depots, police and justice services facilities, and childcare centres.
Goldman Sachs is positive on the company and currently has a conviction buy rating and $4.20 price target on its shares. The broker was pleased with its half year results, highlighting its solid like for like rental growth, 100% occupancy, and weighted average lease expiry of 14.6 years.
As for dividends, Goldman is forecasting dividends per share of 17.2 cents in FY 2022 and 18.3 cents in FY 2023. Based on its current share price of $3.80, this implies yields of 4.5% and 4.8%, respectively.
Coles Group Ltd (ASX: COL)
Another ASX dividend share for investors to consider is Coles. It is of course one of the big two supermarket chains, operating over 800 supermarkets. It also operates over 900 liquor retail stores and more than 700 Coles Express stores
This strong network, its defensive qualities, and track record of same store sales growth, has analysts predicting growing dividends in the coming years.
For example, analysts at Morgans are forecasting fully franked dividends of 61 cents per share in FY 2022 and then 63 cents per share in FY 2023. Based on the current Coles share price of $17.49, this will mean yields of 3.5% and 3.6% respectively.
Morgans also sees decent upside for its shares. The broker currently has an add rating and $19.70 price target on its shares.
