Just because you're investing in ASX dividend shares doesn't mean that you want to lose capital.
Sure, your priority might be the income, but if the share price tanks then it cancels out all the sweet dividends. Or worse.
So here are two S&P/ASX 200 Index (ASX: XJO) shares that Catapult Wealth portfolio manager Tim Haselum would buy for a balance of dividends and capital growth:
Huge yield with reliable tenants
Charter Hall Long WALE REIT (ASX: CLW) is currently paying out a juicy dividend yield of 6.58%.
And with the share price down 0.9% year to date, now is the time to buy.
"The trust was recently trading at a discount to net tangible assets," Haselum told The Bull.
"We believe the price offers an attractive entry point, and distribution yields also appeal."
He added that the real estate the Charter Hall holds in this trust is exceptionally reliable.
"This trust invests in quality real estate assets that are mostly leased to corporate and government tenants," said Haselum.
"It enjoys an occupancy rate of 99%. A portfolio weighted average lease expiry of 11.8 years provides long term income security."
The Charter Hall Long WALE REIT is somewhat divisive among the professional community.
According to CMC Markets, five out of 10 analysts currently rate the stock as a hold, while two reckon it's a buy, and three urge a sell.
A minor hiccup that's presented a buying window
At just over 2%, the dividend yield from waste processor Cleanaway Waste Management Ltd (ASX: CWY) isn't massive.
And to add that, the latest results weren't super flattering.
"A statutory net profit after tax of $49 million in the first half of fiscal year 2023 was down 6.7% on the prior corresponding period," said Haselum.
"The fall largely reflected increasing costs following a fire at its Victorian mill. Acquisition and integration costs also contributed."
The lacklustre performance is reflected in the share price, which has fallen almost 5% year to date.
Haselum, though, reckons the troubles are temporary.
"We believe cost issues will subside and expect the company's earnings to be boosted from acquisitions," he said.
"In our view, the company offers an attractive entry point."
It seems many of Haselum's peers agree. CMC Markets shows seven out of 13 analysts currently rate Cleanaway shares as a buy.
