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Are you looking for some excellent ASX dividend shares to add to your income portfolio? 

Then you might want to take a look at the ones listed below. Here’s what you need to know about these dividend shares:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT.

The Charter Hall Social Infrastructure REIT is a Real Estate Investment Trust that is the largest Australian property trust investing in social infrastructure properties within Australia and New Zealand.

These properties include childcare centres and government properties that have specialist use, limited competition, and low substitution risk. Another positive is that they come with long leases and fixed rent reviews. For example, at the end of the first half, the Charter Hall Social Infrastructure REIT had an occupancy rate of 99.7% and a weighted average lease expiry (WALE) of 14 years.

This bodes well for distribution growth in the coming years. In the meantime, the company intends to pay a distribution of 15.7 cents per unit to shareholders. Based on the current Charter Hall Social Infrastructure share price, this represents a 4.6% yield.

Goldman Sachs has a buy rating and $3.45 price target on its shares.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Another ASX dividend share to look at is Sydney Airport. While the airport operator has had a tough 12 months because of the pandemic, traffic numbers continue to improve. And with vaccines rolling out across both Australia and the globe, these numbers look likely to continue to grow over the next 12 months and beyond.

Goldman Sachs is also a fan of Sydney Airport. While it isn’t expecting much by way of dividends in FY 2021, the broker expects this to change in FY 2022.

It is forecasting an 8.8 cents per share dividend in FY 2021 and then 27.1 cents per share in FY 2022. Based on the current Sydney Airport share price of $5.92, this will mean yields of 1.5% and 4.6%, respectively.

Goldman has a buy rating and $6.73 price target on its shares.

More reading

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• Sydney Airport (ASX:SYD) share price rises amid AGM updates

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week with a strong gain. The benchmark index rose 1.2% to 7,179.5 points. This was a record close for the index.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to open slightly higher

The Australian share market is expected to open the week slightly higher this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 6 points or 0.1% higher. This follows a subdued but positive end to the week on Wall Street. The Dow Jones rose 0.2%, the S&P 500 climbed 0.1%, and the Nasdaq edged 0.1% higher.

Link’s PEXA business to IPO

The Link Administration Holdings Ltd (ASX: LNK) share price will be on watch today. This follows reports that the company’s part-owned PEXA business will be undertaking an IPO in the very near future. According to the AFR, the property settlements business will be valued at $3.3 billion on a 100% basis. This follows a takeover offer last week by private equity firm KKR valuing the business at $3 billion.

Oil prices soften

It could be a poor start to the week for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices softened on Friday. According to Bloomberg, the WTI crude oil price fell 0.8% to US$66.32 a barrel and the Brent crude oil price dropped 0.7% to US$68.72 a barrel. This wasn’t enough to stop both benchmarks from recording gain of over 3% for the week.

Gold price rises

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price pushed higher on Friday night. According to CNBC, the spot gold price rose 0.35% to US$1,905.30 an ounce. This meant the precious metal climbed 1.4% over the five days, thanks partly to a pullback in bond yields and the US dollar.

Inghams rated as a buy

The Inghams Group Ltd (ASX: ING) share price may have jumped 8% on Friday but analysts at Goldman Sachs still see a lot of value in the poultry producer. In response to its trading update, the broker has retained its buy rating and lifted its price target to $4.50. This compares to the latest Inghams share price of $3.40.

More reading

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• These 2 growing ASX shares have upgraded guidance

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There are many exchange-traded funds (ETFs) on the ASX, but one of the best could be VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO).

What’s VanEck Vectors Video Gaming and eSports ETF all about?

The idea of this investment is that investors can get exposure to a portfolio of the largest businesses that are from the game development, e-sports and related hardware and software global sector.

The gaming sector is huge

VanEck says that there are now more than 2.7 billion active gamers worldwide. Not only that, but the video gaming business is now larger than both the movie and music industries combined. It has become a major industry in the entertainment space.

It’s not just casual gamers that are causing growth. The top e-sports tournaments attract viewer numbers that rival World Cup football and the Olympic Games.

With video games now available on our phones, people can decide to play anywhere at any time. They don’t need to bring their gaming console with them.

There is large revenue growth across the world

As a group, the underlying businesses in this portfolio have been achieving consistently-growing revenue.

Since 2015, video gaming has achieved average annual revenue growth of 12%. E-sports has seen revenue growth of an average of 28% per annum since 2015.

According to the Newzoo Global Games Market Report, the Asia Pacific region is forecast to show gaming revenue of US$78.4 billion in 2020, amounting to almost half of the global games market.

The Middle East and Africa region is expected to be the fastest growing games market from 2020, with 14.5% year on year growth to US$5.4 billion.

New revenue streams

E-sports has the potential to create new revenue and earnings streams.

More products and services could mean more profit and help shareholder returns of those businesses.

Those new revenue streams includes game publisher fees, media rights, merchandise, ticket sales and advertising.

Gaming businesses have the potential to earn higher profit margins as they benefit from more global interest. Once a game developer has created the game, extra game sales should mostly add to the bottom line, apart from distribution costs.

What shares are actually in the VanEck Vectors Video Gaming and eSports ETF portfolio?

A few days ago on 27 May 2021, the ETF’s biggest positions were: Nvidia, Sea, Tencent, Advanced Micro Devices, Nintendo, Activision Blizzard, Netease, Take Two Interactive, Bilibili, Electronic Arts, Bandai Namco and Unity Software.

It has a total of 25 positions across the portfolio with the US, Japan and China making up the bulk of the geographical diversifications.

Fees and returns

The management costs of this investment is 0.55% per annum.

Whilst past performance is not an indicator of future performance, the returns in recent times have been above average compared to general share markets.

The index that VanEck Vectors Video Gaming and eSports ETF tracks has delivered an average return per annum of 32.4% over the last three years.

More reading

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The fund manager of the listed investment company (LIC) Clime Capital Ltd (ASX: CAM) believes there are a few ASX shares that are opportunities.

Mach7 Technologies Ltd (ASX: M7T)

The company says it provides vendor neutral archive technology to improve enterprise imaging data storage, sharing and interoperability across healthcare enterprises. Patent-awarded mobile technology extends this advanced enterprise imaging solution technology to mobile devices.

Clime pointed out that in the third quarter of FY21 the ASX share saw record cash receipts of $8.4 million and positive operating cash flow of $3.3 million. The fund manager also noted that the ASX share announced it had been awarded the ‘Global Enterprise Imaging Solutions Product Leadership’ by Frost and Sullivan.

The LIC said Mach7 had $18 million of net cash and a healthy contract pipeline heading into the fourth quarter.

Electro Optic Systems Hldg Ltd (ASX: EOS)

EOS describes itself as a leading Australian technology company operating in the space and defence markets. Our products incorporate advanced electro-optic applications based on EOS core technologies in software, laser, electronics, optronics, gimbals, telescopes and beam directors, and precision mechanisms.

Some uses include space debris, satellite management as well as remotely controlled weapon systems.

Clime pointed out that the recent FY21 first quarter update included $25 million of operating cashflow on $51 million of cash receipts. However, Clime noted that it has $41 million of cash on the balance sheet, as well as a material portion of a $120 million defence systems contract to hit the cash line in the second quarter of 2021. Finalisation of this contract was delayed by travel restrictions in 2020.

The fund manager believes that once this issue has been resolved, the market will refocus on the ASX share’s “significant” growth opportunities.

The company recently gave guidance for 2021, saying that there is potential for material contract awards in the second half of 2021, for which negotiations are underway.

EOS said that in regards to its order backlog, the backlog of executed orders at 27 May was $428 million in revenue terms and $535 million in cashflow terms. It’s expecting cash receipts to be strong as contract assets convert to cash, in a reversal of cash deployment. Revenue is expected to increase in 2021 to between $235 million to $245 million, representing growth of more than 30%.

EOS’ underlying earnings before interest and tax (EBIT) before SpaceLink costs is expected to be between $20 million to $25 million. EBIT after SpaceLink costs is currently expected to be between $3 million to $8 million.

Mineral Resources Limited (ASX: MIN)

Mineral Resources is another business that is in the Clime portfolio.

It’s a business that provides mining services. Mineral Resources also has a portfolio of mining operations across different commodities including iron ore and lithium.

Climate believes that the ASX share is a beneficiary of the good conditions for iron ore miners both through opportunities through mining services work and from iron ore mining the company’s own right.

More reading

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The Australian share market may be trading at a record high, but that doesn’t mean there aren’t any bargains out there.

Two ASX shares that could be dirt cheap are listed below. Here’s what you need to know about them:

Bravura Solutions Ltd (ASX: BVS)

Despite rising by an impressive 16% since this time last month, the Bravura share price is still down 35% from its 52-week high.

The provider of software products and services to the wealth management and funds administration industries has had a difficult time over the last two years. This has been driven by Brexit and COVID-19 uncertainty.

Pleasingly, trading conditions appear to be improving. This led to the company recently reaffirming its guidance for FY 2021. It expects net profit after tax of $32 million to $35 million and second half revenue growth of 10% half on half.

Goldman Sachs was pleased with this update. In response, the broker retained its buy rating and lifted its price target on the company’s shares to $3.90.

Goldman Sachs continues to believe that Bravura has a compelling opportunity in the UK and Australia. It also expects its emerging microservices ecosystem strategy to transform the business to a subscription-based model and drive growth.

It estimates that the company’s shares are changing hands at 20x FY 2022 earnings.

Super Retail Group Ltd (ASX: SUL)

Another potentially cheap ASX share to look at is Super Retail. It is the retail conglomerate behind the BCF, Macpac, Rebel, and Super Cheap Auto brands.

It certainly has been on form in FY 2021. During the first half of FY 2021, it reported a 23% increase in half year sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million.

It then followed this up with a trading update which recently revealed like-for-like sales growth of 28% for the first 44 weeks of FY 2021.

Goldman Sachs is also a fan of Super Retail. It currently has a buy rating and $15.00 price target on its shares.

It is forecasting earnings per share of $1.40 in FY 2021 and then 98 cents in FY 2022. With the Super Retail share price currently fetching $12.72, this means its shares are changing hands at 13x estimated FY 2022 earnings.

In addition, the broker is expecting dividends of 84 cents per share in FY 2021 and 59 cents per share in FY 2022. This represents very attractive fully franked yields of 6.6% and 4.6%.

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There are some small cap ASX shares that have much smaller market capitalisations compared to the typical blue chips. They could be opportunities worth thinking about.

The below two businesses are ones that are capitalising on the shift to online shopping by customers.

They have long-term growth plans and could be worth thinking about:

City Chic Collective Ltd (ASX: CCX)

City Chic is one of the world’s leading retail ASX shares that sells plus-size clothes, footwear and accessories for women.

It now has a large market presence in three regions. In the local market, the City Chic brand is well-known and has a large retail store network. In the US it has a large market presence through the ownership of the Avenue website. Recently it acquired the Evans business in the UK which added a lot of northern hemisphere exposure.

In the 12 months to August 2020, the Evans website had 19 million visits and generated approximately £23 million of sales. The Evans wholesale business, which City Chic also acquired, made £3 million of sales over that same 12-month period.

City Chic is currently rated as a buy by the broker Macquarie Group Ltd (ASX: MQG) with a price target of $5.20.

The FY21 half-year result saw a lot of growth and operating leverage starting to emerge. The first six months of FY21 saw online sales growth of 42%, with 73% of total sales coming from the online channel. Sales revenue increased 13.5% to $119 million, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 21.8% to $23.3 million and statutory net profit rose 24.8% to $13.1 million.

The small cap ASX share continues to experience “strong positive comparable sales” as well as customer base growth. City Chic’s gross profit margin has recovered and shipping and logistics costs are falling.

According to Macquarie, the City Chic share price is valued at 35x FY22’s estimated earnings.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty was Australia’s first beauty e-commerce website. It has a broad and diverse portfolio of over 260 brands and 10,800 products. The business currently operates in Australia and New Zealand.

Broker UBS currently rates Adore Beauty as a buy with a price target of $5.60. It thinks the business can benefit from a long-term growth runway, grow customer numbers and increase customer loyalty. The broker thinks that Adore Beauty can achieve $366 million of sales in FY25.

In the third quarter of FY21, Adore Beauty’s revenue jumped 47% to $39.4 million and active customers went up 69% to 687,000.

The small cap ASX share revealed that there has been strong retention and re-engagement rates for new customers acquired during the COVID-19 period. To help these metrics further, a loyalty program was launched in March, with sign-ups ahead of expectations.

It’s on track to achieve full year FY21 revenue growth of between 43% to 47%. This would be faster than the pre-COVID revenue growth of 38.6% in FY19.

Adore Beauty said that given the predominately fixed nature of the business’ cost base, management expects scale benefits to increase operating leverage and deliver EBITDA margin expansion in the longer-term as the company continues to grow revenue. However, the company is focused on growing its market share with disciplined investment.

More reading

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If you’re looking at following in the footsteps of Warren Buffett by making buy and hold investments, then you might want to look at the shares listed below.

Both have strong market positions and long runways for growth over the next decade. Here’s what you need to know:

Nanosonics Ltd (ASX: NAN)

Nanosonics is a healthcare technology company with a focus on infection control. 

The company currently derives all of its revenue from its trophon EPR disinfection system for ultrasound probes. This technology is regarded as the best in its class and has been growing its market share in the United States and globally consistently each year over the last decade.

Chances are, if you’ve ever had an ultrasound, you’ve been protected by this technology. Management estimates that every day 80,000 patients are protected from the risk of cross contamination because the ultrasound probe has been high-level disinfected with trophon. And the good news is that despite how well it cleans probes compared to rival products, it is environmentally friendly. 

Looking to the future, the company is aiming to expand its portfolio in the coming years with the launch of new products targeting unmet needs. These are understood to have similar addressable markets, which will provide Nanosonics with a very long runway for growth if successful.

UBS currently has a buy rating and $7.00 price target on its shares

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share to consider buying is Temple & Webster. It is one of Australia’s leading online retailers with a focus on furniture and homewares.

Temple & Webster has been growing at a rapid rate in recent years and appears well-placed to continue this trend in the years to come. Especially given the shift to online shopping, which is still only getting started for furniture and homewares.

Analysts at Credit Suisse are confident in the company’s future. They recently initiated coverage on Temple & Webster with an outperform rating and $12.54 price target.

The broker sees scope for online furniture sales to account for 13% of industry sales by FY 2025. And given its clear leadership position, this bodes well for its growth over the next few years.

More reading

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There are a handful of ASX shares that have a long-term record of growing their dividend for many years in a row.

COVID-19 didn’t stop these businesses from increasing the payout for shareholders despite all of the disruption.

These three businesses have been increasing the dividend for many consecutive years:

Domino’s Pizza Enterprises Ltd. (ASX: DMP)

The Domino’s share price has grown by 73% over the past year on the back of a lot of demand during this period of COVID-19 lockdowns.

Domino’s saw a 16.5% increase in network sales to $1.84 billion in the six months to December 2020. There was also 25.4% growth of online sales to $1.42 billion.

The pizza business reported operating leverage in its business. Earnings before interest, tax, depreciation and amortisation (EBITDA) went up 23.8%, earnings before interest and tax (EBIT) grew 32.3% to $153 million, underlying net profit rose 32.8% to $96.8 million and free cashflow surged 50.3% to $124.4 million.

All of this growth funded a 32.5% increase in the interim dividend by the ASX share. It has increased its annual dividend for over a decade.

Domino’s Pizza has plans for a very large store rollout across Europe and Japan over the next few years.  

Sonic Healthcare Ltd (ASX: SHL)

Global pathology business Sonic has been growing its dividend every year for almost a decade. It had been steadily benefiting from the ageing population and expanding global network.

COVID-19 caused a huge rise in demand for its services to process millions of COVID-19 tests. Due to that fact these tests are utilising Sonic’s infrastructure, it’s causing the business to see excellent operating leverage. That’s how net profit was able to jump 166% to $678 million in the FY21 half-year result.

The ASX share gave shareholders a 6% increase to the interim dividend to $0.36 per share.

Sonic revealed that it’s looking for further growth opportunities, including acquisitions, contracts and joint ventures, supported by its “very strong” balance sheet. It’s looking at opportunities in Australia as well as overseas.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is the clear leader when it comes to dividends increases on the ASX. It has grown its dividend every year since 2000, including through the GFC and COVID-19.

That dividend is funded by a diversified portfolio of shares and assets. Some of its biggest investments include TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Milton Corporation Limited (ASX: MLT) and Bki Investment Co Ltd (ASX: BKI).

Each year, Soul Patts receives many millions of dollars of investment income from its portfolio. The investment conglomerate pays for its (limited) expenses and then pays out most of the rest as a growing dividend. However, Soul Patts retains some of that net operating cashflow each year to re-invest into more opportunities.

Some of Soul Patts’ more recent investments includes swimming schools, agriculture and luxury retirement homes.

At the current Soul Patts share price, it has a grossed-up dividend yield of 2.9%.

More reading

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• 2 ASX dividend shares that could provide steady income in retirement
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If you’re wanting to construct a balanced portfolio, having a few blue chip ASX shares in there could be a smart move.

But which blue chip ASX 200 shares should you buy? Two that could be in the buy zone are listed below:

Goodman Group (ASX: GMG)

Goodman Group is a leading integrated commercial and industrial property company. It owns, develops, and manages industrial real estate including logistics and industrial facilities, warehouses and business parks.

It has been growing at a strong rate over the last decade and even during the pandemic. This is thanks to its focus on investing in and developing high quality industrial properties in strategic locations.

Management chooses locations that are close to large urban populations and in and around major gateway cities globally. It notes that this is where demand is strong and transformational changes are driving significant opportunities. Pleasingly, this strategy has been delivering consistently strong returns, leading to solid profit and distribution growth.

Citi is a fan of Goodman. It currently has a buy rating and $22.10 price target on its shares.

REA Group Limited (ASX: REA)

Another blue chip ASX 200 share to look at is this property listings company. Trading conditions have not been easy for REA Group over the last few years. However, thanks to the resilience of its business model and dominant market position, it has still managed to deliver solid growth against the odds.

The good news is that the housing market is now booming and demand for listings looks set to increase. Combined with price increases and new revenue streams, this bodes well for its earnings growth in the coming years. 

In addition, the company is in the process of acquiring Mortgage Choice Limited (ASX: MOC). Management expects this to strengthen its overall offering and create value for shareholders.

Morgan Stanley is positive on the company. It has an overweight rating and $175.00 price target on its shares.

More reading

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There are some S&P/ASX 200 Index (ASX: XJO) infrastructure shares that might be able to see a COVID-19 recovery over the next year or two.

These are businesses that have been heavily affected by COVID-19 but could see a return to pre-COVID levels if things go as hoped.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

The Sydney Airport share price is still down 34% compared to where it was in January 2020.

Broker Morgans thinks that Sydney shares are a buy with a price target of $7.03 over the next 12 months. Morgans likes the business because of the improving passenger situation.

The airline Qantas Airways Limited (ASX: QAN) is seeing a recovery. A couple of weeks ago, Qantas said that corporate travel, including the small business segment, continues to recover and is now at 75% of pre-COVID levels (up from 65% in April). Qantas also said that leisure demand is growing strongly, with deferred international holidays converting into multiple domestic trips.

Qantas is on track to reach 95% of its pre-COVID domestic capacity for the fourth quarter of FY21. Jetstar and Qantas expect to average 120% and 107% respectively of their pre-COVID domestic capacity in FY22.

In Sydney Airport’s latest monthly traffic performance for April 2021, the ASX 200 infrastructure share recorded around 1.5 million passengers. That compares to 49,000 in April 2020 and 2.28 million in April 2019 (down 34.8%).

Another positive is the commencement of two-way travel between New Zealand and Australia from 19 April 2021. In April 2021 it saw international travel increase by 21.7% year on year to 53,000.

The downturn in international passenger traffic is expected by Sydney Airport to persist until government travel restrictions are eased.

Morgans expects Sydney Airport to pay a full year FY21 dividend of $0.10 per share.

Atlas Arteria Group (ASX: ALX)

The Atlas Arteria share price is still down 27% compared to where it was in February 2020. However, Credit Suisse rates Atlas Arteria as a buy with a price target of $7.20.

Atlas Arteria is a global owner, operator and developer of toll roads, with a portfolio of four toll roads in France, Germany and the United States.

It has stakes in different roads. There’s the APRR motorway network located in the east of France where it has a 31.1% indirect interest. It has a stake in ADELAC, which is a link between Annecy in France and Geneva in Switzerland where Atlas Arteria owns a 31.2% stake. There’s the Warnow Tunnel in the city of Rostock of Germany, where it owns a 100% interest. Finally, there’s the Dulles Greenway in the US.

The ASX 200 infrastructure share recently revealed its 2021 first quarter traffic and revenue numbers. Compared to the first quarter of 2019, the weighted average traffic was down 20.1%. However, revenue was only down 15.2%. APRR revenue was down just 12%, whilst Dulles Greenway revenue was down 45.1%.

The ongoing government imposed movement restrictions in France and the US continue to be less stringent as the height of the pandemic in March and April 2020.

Atlas Arteria management are expecting further improvements in traffic as restrictions are eased and vaccines are rolled out.

The broker Credit Suisse thinks the traffic recovery will accelerate in the coming months with a full recovery in the first six months of 2022.

Credit Suisse is expecting a full year distribution of $0.27 per share in FY21.

More reading

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• These were the best performing ASX 200 shares last week
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• ASX 200 surges to new record, Fortescue drops, Inghams flies higher
• A2 Milk (ASX:A2M) shares are up 4% today. Has a bottom been found?

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