Looking for dividend shares to buy? Listed below are two ASX dividend shares that Goldman Sachs rates as buys.
Here's why the broker is bullish on these dividend shares:
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Adairs Ltd (ASX: ADH)
The first ASX dividend share to consider buying is Adairs. It is the furniture and homewares retailer behind the Adairs, Mocka, and Focus on Furniture brands.
Last week, Goldman Sachs retained its buy rating and $2.65 price target on the company's shares. This followed the release of an update at Adairs' annual general meeting which revealed that it was performing in line with guidance in FY 2023.
Goldman commented:
We view the re-affirmed guidance as a key positive for ADH, and we believe the market is pricing in EBIT that is 11-21% below the guidance range, and 12% below GSe. We view the core Adairs business as resilient in the current environment and do not believe the c.40% discount to discretionary retail peers is justified.
In respect to dividends, Goldman is forecasting fully franked dividends per share of 17 cents in FY 2023 and 20 cents in FY 2024. Based on the latest Adairs share price of $2.03, this will mean yields of 8.4% and 9.9%, respectively.
Charter Hall Social Infrastructure REIT (ASX: CQE)
Another ASX dividend share that Goldman Sachs rates highly is the Charter Hall Social Infrastructure REIT. It is a real estate investment trust that invests in social infrastructure properties such as bus depots, police and justice services facilities, and childcare centres.
Goldman Sachs recently reiterated its conviction buy rating with a $4.13 price target on its shares. This followed news that the company has acquired a 25% interest in Geoscience Australia property in Canberra. It commented:
In our view, the transaction demonstrates the fund is executing on its strategy to broaden its investments in social infrastructure and its ability to source quality, accretive assets leased to strong tenant covenants. Furthermore, despite the challenging macroeconomic backdrop, childcare fundamentals are solid, and we remain attracted to CQE's resilient underlying cash flows. CQE has reiterated its FY23E distribution guidance of 17.2cps, with our estimates in line.
In respect to dividends, as mentioned above, Goldman is forecasting dividends of 17.2 cents per share in in FY 2023 and then 18 cents per share in FY 2024. Based on the current Charter Hall Social Infrastructure REIT unit price of $3.25, this will mean yields of 5.3% and 5.5%, respectively.
