The good news for income investors is there are a large number of dividend shares for them to choose from on the Australian share market.
Two such shares that Goldman Sachs rates as buys are listed below. Here's what the broker is saying about them:
Charter Hall Social Infrastructure REIT (ASX: CQE)
The first ASX dividend share that Goldman Sachs is bullish on is this real estate investment trust.
The Charter Hall Social Infrastructure REIT invests in social infrastructure properties such as bus depots, police and justice services facilities, and childcare centres.
And while its recent results were a touch short of expectations, the broker saw enough to retain its conviction buy rating and bump its price target up to $4.35.
Goldman commented:
Although CQE's result came in slightly below our expectations, we continue to believe the REIT is relatively well positioned given the sector's positive fundamentals and CQE's strong balance sheet, with headroom and liquidity to pursue investment opportunities, although rising interest costs will be a near term headwind in FY23. Furthermore, we remain attracted to its relatively resilient cash flows, underpinned by triple net leases to strong tenant covenants. CQE trades at an ~8% discount to NTA (versus a ~14% premium historically) and offers a potential 12m total return of ~20% at our revised TP of A$4.35, and we maintain our Buy rating (on CL).
As for dividends, the broker is forecasting dividends per share of 17.3 cents in FY 2023 and 18 cents in FY 2024. Based on the current Charter Hall Social Infrastructure REIT unit price of $3.76, this will mean yields of 4.6% and 4.8%, respectively.
GQG Partners Inc (ASX: GQG)
Another ASX dividend share that Goldman Sachs is bullish on is fund manager GQG.
The broker rates the company highly for a number of reasons. This includes its strong investment performance, low fees, and attractive valuation.
The broker explained:
Overall we reiterate Buy on GQG given: i) strong operating momentum in the business as evidenced by its investment performance, ii) GQG's lowest quartile fee offering among global peers, and strong distribution coupled with a scalable business model, iii) GQG's co-founders have the majority of their net wealth invested in GQG and its investment strategies, and iv) our revised 12m TP of A$1.92 offers c.27% [now 19%] TSR.
In respect to dividends, the broker is forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current GQG share price of $1.68, this will mean yields of 4.8% and 5.4%, respectively.
