Looking for passive income? Macquarie just upgraded these 2 high-yield ASX 200 stocks

Those looking to supplement their income might want to consider these stocks.

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Key points

  • In response to ongoing inflation and cost-of-living challenges, investors are seeking high-yield ASX 200 stocks. 
  • Macquarie recently upgraded Charter Hall Retail REIT and Scentre Group.
  • At the time of writing, Charter Hall Retail REIT offers a 5.93% dividend yield, meanwhile Scentre Group's yield is 4.29%.

ASX investors are often on the lookout for ASX 200 stocks with high dividend yields.

It's no secret that inflation has been rampant over the past couple of years. 

An increasing number of Australians are facing cost-of-living challenges. 

Last week, the ABS reported that the monthly Consumer Price Index (CPI) indicator rose 3.0% in the 12 months to August. The figure was significantly ahead of consensus expectations of a 2.8% increase. The ABS said that the largest contributors to annual inflation were housing (up 4.5%), food and non-alcoholic beverages (up 3.0%), and alcohol and tobacco (up 6.0%).

As the country continues to battle inflation, ASX investors may be on the lookout for ASX 200 stocks with high dividend yields to supplement living costs. 

Historically, the big four banks offered attractive dividend yields. However, following their strong share price action, their current yields are much lower than their historical averages. 

ASX investors may be looking for ASX 200 alternatives to the big four banks. 

With interest rate cuts on the horizon, ASX investors may be looking for value in ASX REITs.

In a recent report, Direct market outcomes support upgrades, Macquarie revealed two high-yield ASX 200 REITs that it had recently upgraded.

Charter Hall Retail REIT (ASX: CQR)

Charter Hall Retail REIT is a leading owner of property for convenience retailers. In other words, it owns shopping centres around Australia. 

It's managed by the fund manager Charter Hall Group (ASX: CHC), which has substantial experience managing properties in various real estate sectors.

Over the past 5 years, Charter Hall Retail REIT has risen 20%. At the time of writing, it offers an attractive dividend yield of 5.93%. 

Last week, Macquarie upgraded Charter Hall Retail REIT from neutral to outperform.

The broker also increased its price target by 7% from $4.12 to $4.41. 

Scentre Group Ltd (ASX: SCG)

Scentre Group operates 42 Westfield shopping centre destinations in Australia and New Zealand. 

Over the past 5 years, Scentre Group has delivered an impressive performance, rising 85%. 

At the time of writing, the company offers a dividend yield of 4.29%. 

Last week, Macquarie upgraded Scentre Group shares from underperform to neutral. 

The broker also increased its price target by 18% from $3.51 to $4.15. 

The Motley Fool's Bronwyn Allen recently revealed Scentre Group to be among the top 10 shares being bought by Advised HNWI SMSF accounts above $3M in FY26.

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Charter Hall Retail REIT and Macquarie 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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