Are you an income investor looking for alternatives to term deposits? If you are, then you might want to look at the reliable ASX dividend shares listed below.
Here’s what you need to know about these shares:
Charter Hall Social Infrastructure REIT (ASX: CQE)
Charter Hall Social Infrastructure REIT is a real estate company with a focus on high quality social infrastructure properties. These properties are ones with specialist use, low substitution risk, and very long leases.
In respect to the latter, at the end of the first half, the Charter Hall Social Infrastructure REIT reported an occupancy rate of 99.7% and a weighted average lease expiry (WALE) of 14 years.
Another positive from the release was that management reported another increase in the number of tenancies that are on fixed rent reviews to almost two-thirds. It also revealed that lease expiries within the next five years account for just 4.7% of rental income.
In light of the above, Charter Hall Social Infrastructure appears well-placed to grow its dividend consistently over the next decade.
For now, though, the company intends to pay a distribution of 15.7 cents per unit to shareholders in FY 2021. Based on the current Charter Hall Social Infrastructure share price, this represents a ~5% yield.
Rural Funds Group (ASX: RFF)
Another reliable ASX dividend share to look at is Rural Funds. It is the owner of a $1.4 billion portfolio of diversified agricultural assets, including almond and macadamia orchards, premium vineyards, water entitlements, cattle and cropping assets.
All of Rural Funds’ properties are leased to high quality and experienced tenants. And much like the Charter Hall Social Infrastructure REIT, they are on very long leases. At the end of the first half, Rural Funds reported a WALE of 11.1 years.
This, combined with built in rental increases, means the company is well-placed to grow its distribution by its target of 4% per annum over the long term.
In FY 2021, Rural Funds intends to pay an 11.28 cents per share distribution. Based on the current Rural Funds share price, this equates to a 4.7% yield.
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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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