Super Retail Group Ltd (ASX:SUL) and this ASX dividend share could be great options for income investors this month…
The post 2 ASX dividend shares with yields above 4.5% appeared first on The Motley Fool Australia. –
If you’re fed up with the low interest rates, you’re not alone. The good news is that the Australian share market is home to a large number of shares with attractive dividend yields.
Two that have yields above 4.5% and could be worth looking closely at are listed below:
Charter Hall Social Infrastructure REIT (ASX: CQE)
Charter Hall Social Infrastructure REIT is a real estate investment trust that invests in social infrastructure properties.
At present the company owns a total of 371 properties across the ANZ region worth $1.3 billion and has a sky high 99.5% occupancy rate. These properties include childcare centres and government buildings such as bus terminals, emergency services command centres, and council properties.
Management believes that targeting these types of assets will result in high tenant retention rates over the long term and ongoing capital growth.
One broker that is a fan of the company is Goldman Sachs. It has a conviction buy rating and $3.35 price target on its shares. Goldman is also forecasting a 15 cents per share dividend in FY 2021.
Based on the current Charter Hall Social Infrastructure REIT share price, this represents a 4.85% yield.
Super Retail Group Ltd (ASX: SUL)
Another dividend share to consider is Super Retail. It is the company behind popular retail store brands BCF, Macpac, Rebel, and Super Cheap Auto.
With international borders closed, Super Retail has been one of the retailers to benefit most from a redirection of consumer spending. So much so, it is expecting to report a 23% increase in half year sales this month.
And thanks to margin expansion, management expects its half year profits to more than double. It is forecasting normalised net profit after tax in the range of $174 million to $177 million. This will be a 135% to 139% increase on the prior corresponding period.
Goldman Sachs is also positive on Super Retail. It has a buy rating and $14.80 price target on its shares. In addition, its analysts are expecting the company to pay a fully franked dividend of 78 cents per share in FY 2021. Based on the latest Super Retail share price, this represents an enormous 6.8% dividend yield.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.