Analysts expect big yields from these ASX dividend shares

Here are two dividend shares with juicy yields…

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With interest rates at such low levels, at least for now, income investors may want to look at the dividend shares listed below for a source of income.

Here’s why these two ASX dividend shares have been rated as buys:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is BHP. With commodity prices booming and tipped to remain at favourable levels for some time to come, this mining giant is well-placed to generate significant free cash flow.

This positions the Big Australian to reward shareholders with big dividends again in FY 2022 and FY 2023.

And although the BHP share price has rallied strongly on the back of rising commodity prices, the team at Macquarie still see plenty of value here. Last week the broker retained its outperform rating and lifted its price target to $61.00.

As for dividends, Macquarie is forecasting fully franked dividends per share of ~$5.22 in FY 2022 and then ~$3.61 in FY 2023. Based on the current BHP share price of $48.82, this implies yields of 10.7% and 7.4%, respectively.

Charter Hall Long WALE REIT (ASX: CLW)

Another dividend share for income investors to look at is the Charter Hall Long Wale REIT. This 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.

The company recently added to its portfolio with the acquisition of ALE Property with Hostplus for ~$1.7 billion. This added ~78 hotel properties across the five mainland states that are all leased to Endeavour Group Ltd (ASX: EDV).

Analysts at Citi are positive on the Charter Hall Long Wale REIT. The broker currently has a buy rating and $5.71 price target on its shares. It was pleased with its first half performance and sees upside risk to guidance.

In respect to dividends, Citi is forecasting dividends per share of 30.8 cents in FY 2022 and 30.9 cents in FY 2023. Based on the current Charter Hall Long Wale REIT share price of $5.31, this will mean yields of ~5.8%.

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.

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