2 high-yield ASX dividend shares to buy as they bounce

I rate these stocks as buys, they look cheap and they have high yields.

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The ASX dividend shares we'll explore in this article look cheap to me. They offer big dividend yields, and they're starting to rise again.

When dividend stocks are trading lower, they can boost their dividend yield. For example, if a business has a 5% dividend yield and its share price falls 10%, then the dividend yield becomes 5.5%. However, if a business has a 5% yield and its share price rises 10%, then the yield drops to 4.55%.

Therefore, it can be a smart strategy to buy quality undervalued dividend stocks before they rise too far in a recovery. With that in mind, here are two ASX dividend shares that I think are passive income opportunities.

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT) that owns commercial property. What I particularly like about this ASX share is that its property portfolio is diversified, and it has a long weighted average lease expiry (WALE).

Its portfolio includes buildings across industrial and logistics, social infrastructure, office, service stations, pubs, agri-logistics and retail.

The WALE of more than 10 years means the business has strong rental income visibility and resilience. Almost all (99%) of the tenants are blue-chip players, including the Australian Government, Telstra Group Ltd (ASX: TLS) and BP.

The ASX dividend share's rental income is steadily growing, with some leases on fixed annual increases and other contracts linked to inflation.

As we can see on the chart below, the Charter Hall Long WALE REIT share price has climbed around 5% since 26 April. I think this could be a good time to buy while it offers a guided FY24 distribution yield of 7.4%.

APA Group (ASX: APA)

APA owns and operates Australian energy infrastructure worth billions of dollars, including huge gas pipelines, electricity transmission assets, renewable energy generation and gas storage, processing and energy generation.

Impressively, the business has grown its distribution every year for 20 years, meaning it has one of the best records for long-term passive income growth on the ASX, though that's not guaranteed to continue forever.

APA keeps growing its asset base – it's working on new pipelines right now. It also recently acquired Alinta Energy Pilbara. This means APA can be a leading provider of renewable energy infrastructure solutions for remote regions in Australia (with miners as major customers).

The ASX dividend share expects to pay a distribution per security of 56 cents in FY24, which is a forward distribution yield of more than 6.2%.

The chart below shows that the APA share price has risen more than 7% in the last month, so now could be a good time to invest.

Motley Fool contributor Tristan Harrison 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 Apa Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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