Analysts name 2 ASX dividend shares to buy to combat inflation

Close-up photo of a back jean pocket with Australian dollar bills in it and a hand reaching in to collect the notes

Close-up photo of a back jean pocket with Australian dollar bills in it and a hand reaching in to collect the notes

Listed below are a couple of dividend shares that analysts believe are in the buy zone right now and offer yields that could help combat inflation.

Here’s what income investors need to know about these dividend shares:

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share to look at is the Charter Hall Long Wale REIT.

It is a property company that invests in high quality real estate assets that are leased predominantly to corporate and government tenants on long term leases. So long, in fact, that at the last count its weighted average lease expiry (WALE) stood at 12.2 years.

Citi is a fan of the company, partly “given the appeal of secure income in uncertain times.” The broker currently has a buy rating and $5.71 price target on its shares.

In respect to dividends, Citi is forecasting dividends per share of 31 cents in FY 2022 and FY 2023. Based on the current Charter Hall Long Wale REIT share price of $4.63, this will mean yields of ~6.7%.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to consider is supermarket giant, Coles.

It could be a high quality option due to its defensive qualities. These are supported by its huge network of supermarket, convenience stores, and liquor stores.

In addition, Coles has a positive growth outlook. This is being underpinned by its refreshed strategy, which is focusing on cutting costs with automation and efficiencies.

Morgans is bullish on Coles. It currently has an add rating and $20.65 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 61 cents per share in FY 2022 and then 64 cents per share in FY 2023. Based on the latest Coles share price of $17.61, this will mean yields of 3.45% and 3.65%, respectively.

The post Analysts name 2 ASX dividend shares to buy to combat inflation appeared first on The Motley Fool Australia.

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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 positions in and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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