Charter Hall Retail REIT is one of the ASX dividend shares with high yields.
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There are some ASX dividend shares that have high dividend yields.
Interest rates are incredibly low in Australia and around the world right now. That can make it hard to locate investments that still have relatively high yields.
Here are two that do still have high yields:
Charter Hall Retail REIT (ASX: CQR)
This is a real estate investment trust (REIT), as the name suggests, that specialises in properties in the retail space.
The idea is that it invests in high-quality Australian supermarket anchored convenience and convenience-plus shopping centres.
According to Charter Hall Group (ASX: CHC), it has a portfolio worth well over $3 billion spread across around 350 properties. The ASX dividend share had an occupancy rate of 97.8% and a weighted average lease expiry (WALE) of 7.7 years.
The CEO of Charter Hall Retail recently said:
Our Long WALE convenience retail assets remain highly attractive given the quality of the tenants, attractive lease structures, duration of leases and high underlying land values. These assets have delivered CQR unitholders highly defensive and reliable earnings over the last twelve months and are now also delivering significant growth in capital values. It’s pleasing to see the results of our ongoing portfolio curation delivering these gains.
One of the brokers that likes Charter Hall Retail REIT is Macquarie Group Ltd (ASX: MQG) with a price target of $4.19. The broker projects a distribution of 25.6 cents per unit in FY22, equating to a distribution yield of 6.8%.
Rural Funds Group (ASX: RFF)
Rural Funds is another ASX dividend share in the REIT space.
This one owns a portfolio of high-quality farms around Australia. Those properties are spread across different states and climactic conditions to lower risks.
However, Rural Funds is not the one that takes on the operational risks, that’s on the tenants. The REIT owns a large amount of water entitlements for tenants to use.
Rural Funds has a diverse portfolio of farms includes cattle, almonds, vineyards, macadamias and cropping (sugar and cotton).
The business is steadily adding to its portfolio with acquisitions which diversifies and improves the asset base and tenant exposures.
It has a goal of increasing the distribution for investors by 4% each year. Rural Funds has been successful with that goal and has guided for the expected 4% increase in FY22.
Based on the forecast of 11.73 cents per unit, Rural Funds has a forward distribution yield of 4.5%.
Should you invest $1,000 in Rural Funds right now?
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Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited, RURALFUNDS STAPLED, and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.