Goldman Sachs names 2 ASX dividend shares to buy

If you’re looking for dividend shares to add to your income portfolio, then it could be a good idea to check out the two listed below.

These ASX dividend shares have been rated as buys by analysts at Goldman Sachs. Here’s what the broker is saying about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

Goldman Sachs currently has a conviction buy rating and $4.35 price target on this dividend share.

The Charter Hall Social Infrastructure REIT is a real estate investment trust that invests in social infrastructure properties such as bus depots, police and justice services facilities, and childcare centres.

Goldman believes the company is well-placed for growth in the coming years thanks to the sector’s positive fundamentals and its strong balance sheet. The broker commented:

[W]e continue to believe the REIT is relatively well positioned given the sector’s positive fundamentals and CQE’s strong balance sheet, with headroom and liquidity to pursue investment opportunities, although rising interest costs will be a near term headwind in FY23. Furthermore, we remain attracted to its relatively resilient cash flows, underpinned by triple net leases to strong tenant covenants. CQE trades at an ~8% discount to NTA (versus a ~14% premium historically) and offers a potential 12m total return of ~20% at our revised TP of A$4.35, and we maintain our Buy rating (on CL).

As for dividends, Goldman is forecasting dividends per share of 17.3 cents in FY 2023 and 18 cents in FY 2024. Based on the current Charter Hall Social Infrastructure REIT unit price of $3.48, this will mean yields of 5% and 5.2%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Goldman has a buy rating and $1.63 price target on this dividend share.

HomeCo Daily Needs is another real estate investment trust but this time with a focus on metro-located, convenience-based assets across neighbourhood retail, large format retail, and health and services.

The broker believes that its shares are cheap at current levels, particularly given its positive medium term growth outlook. It commented:

We continue to believe HDN is undervalued at its current valuation given its diversified tenant base, and see it as well positioned to benefit from the shift to omni channel retailing, with additional external growth opportunities to drive earnings growth over the medium-term.

Goldman is also forecasting some very generous dividend yields. It is expecting dividends of 8.3 cents per share in FY 2023 and 8.5 cents per share in FY 2024. Based on the current HomeCo Daily Needs REIT unit price of $1.26, this will mean yields of 6.6% and 6.75%, respectively.

The post Goldman Sachs names 2 ASX dividend shares to buy 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 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 Scott Phillips.

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