Are you looking for some dividend shares to add to your income portfolio?
If you are, then the two listed below could be top options.
Both have been named as buys and tipped to provide attractive yields in the coming years. Here's what you need to know about them:
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 leading property company that invests in high quality real estate assets that are leased mainly to corporate and government tenants. And, as you might have guessed from its name, these are on long term leases.
The team at Citi is positive on the company. It has put a buy rating and $4.70 price target on its shares. Citi likes the Charter Hall Long WALE REIT due to its attractive valuation, big yield, and low risk income stream. The broker explained
The inorganic growth story remains challenged but at current price, we see relative value given the -36% discount to NTA, >7% yield (much higher than triple net peers), c. 50% of the rents indexed to CPI and a low risk income stream with c. 12 year WALE and 99.9% occupancy.
The broker expects this to underpin dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. Based on the current Charter Hall Long Wale REIT unit price of $4.42, this will mean yields of 6.3% and 6.6%, respectively.
QBE Insurance Group Ltd (ASX: QBE)
Another ASX dividend share to consider buying is insurance giant QBE.
Despite the release of a disappointing catastrophe update last week, the team at Morgans is sticking with the company and has reiterated its add rating and $14.89 price target on its shares.
Morgans believes that QBE has done relatively well given the very volatile year for weather and that investors should focus more on its longer term outlook. The latter is looking positive thanks to premium increases, rising rates, and cost reductions. It commented:
We believe tailwinds such as rising bond yields, premium rate increases and cost out will drive an improved earnings profile for QBE over the next few years. The stock also remains inexpensive trading on ~10x FY23F earnings.
In respect to dividends, the broker is forecasting a 42.6 cents per share dividend in FY 2022 and then a 90.3 cents per share dividend in FY 2023. Based on the latest QBE share price of $12.95, this equates to yields of 3.3% and 7%, respectively.
