Want passive income? Forget term deposits and buy these high yield ASX dividend shares: brokers

Although interest rates on savings accounts and term deposits are improving, they still pale in comparison to what you can find on the Australian share market.

For example, the two ASX dividend shares named below offer yields that are vastly better than what you will find with Commonwealth Bank of Australia (ASX: CBA) term deposits right now.

Here’s what you need to know:

Charter Hall Long WALE REIT (ASX: CLW)

The team at Citi see a lot of value in this property company’s shares at current levels.

The broker currently has a buy rating and $5.00 price target on its shares. Based on the current Charter Hall Long WALE REIT share price of $4.28, this implies potential upside of 17% for investors.

Citi likes the company due to its “low risk income stream with c. 12 year WALE and 99.9% occupancy.”

As for dividends, the broker expects dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. This would mean yields of 6.5% and 6.8%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

The Healthco Healthcare and Wellness REIT has been tipped as both a buy and a big dividend payer by analysts at Morgans.

The real estate investment trust, which invests in healthcare and wellness assets such as hospitals, aged care, and childcare properties, is on the broker’s best ideas list with an add rating and $2.05 price target.

Based on the current Healthco Healthcare and Wellness REIT share price of $1.35, this suggests potential upside of almost 52% for investors over the next 12 months.

As for dividends, Morgans is forecasting dividends per share of 8 cents in both FY 2023 and FY 2024. This will mean yields of 5.9% for investors in both years.

The post Want passive income? Forget term deposits and buy these high yield ASX dividend shares: brokers 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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