Rio Tinto Limited (ASX:RIO) and this ASX dividend share could be quality options for income investors. Here’s why…
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Are you looking for some dividend options for your portfolio in February? Then check out the two ASX shares listed below.
Here’s why these ASX dividend shares have been tipped to as buys this month:
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 396 properties across the ANZ region worth $1.36 billion and has a sky high 99.7% 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.
Last week the company released its half year results and delivered a 14.1% increase in operating earnings to $29.1 million. It also revealed that its weighted average lease expiry (WALE) had increased by 1.3 years to a lengthy 14 years.
Another positive was that management upgraded its full year distribution guidance to 15.7 cents per share. Based on the current Charter Hall Social Infrastructure REIT share price, this represents a 5% yield.
One broker that is a fan of the company is Goldman Sachs. It has a conviction buy rating and $3.45 price target on its shares.
Rio Tinto Limited (ASX: RIO)
If you don’t mind investing in the resources sector, then you might want to look at Rio Tinto. Thanks to strong copper and iron ore prices, this mining giant has been tipped to reward shareholders with huge dividends in FY 2021.
One broker that is tipping a particularly big payout for investors this year is Ord Minnett. It recently put a buy rating and $153.00 price target on the company’s shares and is forecasting a massive ~$11.30 per share fully franked dividend in FY 2021.
Based on the current Rio Tinto share price, this represents a fully franked 9.5% dividend yield.
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Returns As of 15th February 2021
- ASX 200 Weekly Wrap: ASX cools on earnings reality check
- 5 things to watch on the ASX 200 next week
- 2 quality ASX dividend shares to buy and hold
- 3 reasons why the Rio Tinto (ASX:RIO) share price is up today
- Charter Hall Social Infrastructure (ASX:CQE) shares higher after upgrading dividend guidance
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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