Looking for growing dividends? Check out these shares…
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If you’re fed up with low interest rates, you’re not alone. But don’t worry, because the Australian share market is here to save the day with its plenty of dividend options.
Two ASX dividend shares that are growing at a decent clip are listed below. Here’s why they are tipped to grow their dividends over the coming years:
Charter Hall Social Infrastructure REIT (ASX: CQE)
The first ASX dividend share to consider is the Charter Hall Social Infrastructure REIT. It is a high quality real estate investment trust with a focus on properties with specialist use, limited competition, low substitution risk, and very long leases.
These are properties such as bus depots, childcare centres, police stations, and justice services facilities. In respect to childcare centres, Charter Hall Social Infrastructure REIT is the largest owner of early learning centres in Australia. At the last count, it was actively partnered with 35 high quality childcare operators.
According to a note out of Goldman Sachs, it believes the Charter Hall Social Infrastructure REIT is well-placed for growth in the coming years.
As a result, it is forecasting dividends per share of 15.7 cents, 17.6 cents, and 18.8 cents over the next three financial years. This represents yields of 4.3%, 4.8%, and 5.2%, respectively.
Sonic Healthcare Limited (ASX: SHL)
Another ASX share that has been tipped to grow its dividend in the coming years is Sonic Healthcare.
It is one of the world’s leading healthcare providers, with operations in Australasia, Europe and North America. Sonic currently employs more than 1,500 pathologists and radiologists, and more than 10,000 medical scientists, radiographers, sonographers, technicians, and nurses.
Like Integrated Diagnostics, it has been a very strong performer in FY 2021. This has been driven by growth across the business, but particularly from its COVID-19 testing business.
Analysts at Credit Suisse expect its growth to continue. The broker is forecasting partially franked dividends per share of 97 cents in FY 2021 and then 98 cents in FY 2022. Based on the latest Sonic share price, this implies potential yields of 2.4% and 2.5%, respectively, over the next couple of years.
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Returns As of 15th February 2021
Motley Fool contributor James Mickleboro 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 recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.