Insights

2 quality ASX dividend shares with generous yields

BHP Group Ltd (ASX:BHP) and this ASX dividend share offer generous yields that smash current interest rates…
The post 2 quality ASX dividend shares with generous yields appeared first on The Motley Fool Australia. –

Rolled up notes of Australia dollars from $5 to $100 notes

You’re not alone if you’re fed up with the low interest rates on offer with savings accounts and term deposits.

But don’t worry, because the Australian share market is here to save the day with its countless dividend options.

Two ASX dividend shares that can help you smash low rates are listed below:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is this mining giant.

The Big Australian has been in fine form this year thanks to its exposure to a number of key commodities experiencing very strong prices.

Chief among them is iron ore, which is threatening to break through the US$200 a tonne level. This is significantly higher than its production cost, leading to bumper free cash flows.

Pleasingly, due to its strong balance sheet and generous dividend policy, the majority of this free cash flow is likely to end up in shareholders’ pockets.

One bullish broker is Macquarie. It currently has an outperform rating and $57.00 price target on its shares. This compares to the latest BHP share price of $47.70.

Macquarie is forecasting dividends per share of ~$3.49 and ~$2.96 over the next two years. This equates to fully franked yields of 7.3% and 6.2%, respectively.

Charter Hall Social Infrastructure REIT (ASX: CQE)

A second ASX dividend share to consider is the Charter Hall Social Infrastructure REIT.

This real estate investment trust owns a portfolio  of properties with specialist use, limited competition, and low substitution risk.

Among its portfolio you will find bus depots, police and justice services facilities, and childcare centres.

In respect to the latter, the Charter Hall Social Infrastructure REIT is the country’s largest owner of early learning centres. It actively partners with 35 high quality childcare operators.

During the first half of FY 2021,  the company was also in fine form. It reported a 14.1% increase in operating earnings to $29.1 million. Another couple of positives were it weighted average lease expiry (WALE) increasing to 14 years and its occupancy rate of 99.7%.

This strong form allowed management to upgrade its FY 2021 distribution guidance to 15.7 cents per unit. Based on the current Charter Hall Social Infrastructure share price, this represents a 4.8% yield.

One broker that is a fan is Goldman Sachs. It currently has a conviction buy rating and $3.45 price target on its shares.

These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

Click Here For Your Free Stock Report

Returns As of 15th February 2021

More reading

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.

The post 2 quality ASX dividend shares with generous yields appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!