Analysts name 2 ASX dividend shares to buy to combat inflation

These ASX dividend shares are in the buy zone according to analysts…

| More on:
Close-up photo of a back jean pocket with Australian dollar bills in it and a hand reaching in to collect the notes

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

Listed below are a couple of dividend shares that analysts believe are in the buy zone right now and offer yields that could help combat inflation.

Here’s what income investors need to know about these dividend shares:

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share to look at is the Charter Hall Long Wale REIT.

It is a property company that invests in high quality real estate assets that are leased predominantly to corporate and government tenants on long term leases. So long, in fact, that at the last count its weighted average lease expiry (WALE) stood at 12.2 years.

Citi is a fan of the company, partly “given the appeal of secure income in uncertain times.” The broker currently has a buy rating and $5.71 price target on its shares.

In respect to dividends, Citi is forecasting dividends per share of 31 cents in FY 2022 and FY 2023. Based on the current Charter Hall Long Wale REIT share price of $4.63, this will mean yields of ~6.7%.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to consider is supermarket giant, Coles.

It could be a high quality option due to its defensive qualities. These are supported by its huge network of supermarket, convenience stores, and liquor stores.

In addition, Coles has a positive growth outlook. This is being underpinned by its refreshed strategy, which is focusing on cutting costs with automation and efficiencies.

Morgans is bullish on Coles. It currently has an add rating and $20.65 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 61 cents per share in FY 2022 and then 64 cents per share in FY 2023. Based on the latest Coles share price of $17.61, this will mean yields of 3.45% and 3.65%, 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 positions in and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Person pointing at an increasing blue graph which represents a rising share price.
Dividend Investing

Guess which little-known ASX share is soaring 15% on special dividend news

Investors are paying more attention to dividend stocks as the pace of capital gains looks to slow amid rising interest…

Read more »

Adult man wearing a black suit and necktie calculating via old fashioned calculator, surrounded by newspapers.
Dividend Investing

Everything you need to know about the latest AGL dividend

The ASX 200 energy giant has posted its lowest regular dividend since listing.

Read more »

A woman looks questioning as she puts a coin into a piggy bank.
Dividend Investing

Everything you need to know about the latest Newcrest dividend

The ASX 200 gold and copper producer has halved its final dividend year-on-year.

Read more »

Dividend Investing

Brokers name 2 ASX dividend shares to buy

Brokers have named these dividend shares as buys...

Read more »

A woman holds out a handful of Australian dollars.
Dividend Investing

Everything you need to know about the latest Transurban dividend

How big is Transurban's new dividend yield?

Read more »

Happy smiling young woman drinking red wine whilst standing amongst the grapevines in a vineyard as the Treasury Wines share price rises today
Dividend Investing

Treasury Wine share price defies market slump. Could it be the dividend boost?

The winemaker just lifted its dividend. Here are the details.

Read more »

A man wearing a blue jumper and a hat looks at his laptop with a distressed and fearful look on his face as he reads about the Core Lithium share price falling 30% in a month
Dividend Investing

Here’s why the IAG share price is slumping today

The insurer's shares are treading lower for a reason today...

Read more »

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.
Dividend Investing

Here’s the BHP dividend forecast through to 2026

Where is the BHP dividend heading in the coming years?

Read more »