Charter Hall Social Infrastructure REIT (ASX:CQE) and this ASX dividend share could be top options for income investors. Here’s why…
The post 2 quality ASX dividend shares with generous yields appeared first on The Motley Fool Australia. –
Are you looking for some dividend options for your portfolio this week? Then check out the two ASX shares listed below.
Both these dividend shares offer investors generous yields and appear well-placed for growth over the long term. Here’s what you need to know about them:
Charter Hall Social Infrastructure REIT (ASX: CQE)
The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT.
Charter Hall Social Infrastructure REIT is a real estate investment trust with a focus on high quality social infrastructure properties. The company’s portfolio includes properties such as childcare centres and government buildings. These are properties with specialist use, limited competition, low substitution risk, and long leases.
In respect to the latter, at the end of the first half of FY 2021, the Charter Hall Social Infrastructure REIT portfolio was 99.7% leased with a weighted average lease expiry (WALE) of 14 years. This helped underpin a solid profit result for the period.
Furthermore, this strong form allowed the company to increase its FY 2021 distribution guidance to 15.7 cents per unit. Based on the current Charter Hall Social Infrastructure share price, this represents a 5.15% yield.
Rural Funds Group (ASX: RFF)
Rural Funds is another ASX dividend share which benefits from ultra long leases. At the last count, the Australian agricultural property company had a WALE of 11.1 years.
And given that these leases have fixed rental increases built into them, the company is well-positioned to grow its distribution by its target rate of 4% per annum long into the future.
In FY 2021, the company intends to pay a distribution of 11.28 cents per share to its shareholders. After which, Rural Funds has provided guidance for an FY 2022 distribution of 11.73 cents per share.
Based on the current Rural Funds share price, this will mean yields of 4.8% and 5%, respectively, over the next couple of years.
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Returns As of 15th February 2021
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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 RURALFUNDS STAPLED. 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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