With savings accounts and term deposits still offering very low interest rates, the share market arguably remains the best place to earn a passive income.
But which ASX dividend shares should you consider buying? Two to look closely at are listed below:
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Charter Hall Social Infrastructure REIT (ASX: CQE)
The Charter Hall Social Infrastructure REIT is a real estate investment trust focused on social infrastructure properties. These include properties such as childcare centres and government sites.
Demand has been very strong for its properties. So much so, at the end of the first half of FY 2021, the company had an occupancy rate of 99.7% and a weighted average lease expiry (WALE) of 14 years. A recent update reveals that its WALE has lengthened again following a series of renewals.
This underpinned solid earnings growth during the half, allowing the Charter Hall Social Infrastructure REIT board to increase its fully year distribution guidance to 15.7 cents per share for FY 2021.
Since then, it has reaffirmed this guidance and advised of plans to pay a special distribution of 4 cents per unit in FY 2021. This brings its full year distribution to 19.7 cents per unit.
Based on the current Charter Hall Social Infrastructure REIT share price, this will mean a yield of 5.4% for investors. Goldman Sachs currently has a buy rating and $3.60 price target on its shares, which is broadly where its shares trade today.
Transurban Group (ASX: TCL)
Another ASX dividend share for investors to look at is this leading toll road operator.
Transurban has a portfolio of 17 roads in Australia and four in North America. It also has a significant project pipeline across its networks that look set to underpin further growth in the coming years.
And while trading conditions are mixed at the moment due to the pandemic and putting pressure on distributions, it could be worth sticking with the company. Especially given how analysts believe that distributions will start to normalise again very soon.
Ord Minnett is positive on the company's future. Its analysts currently have a buy rating and $16.00 price target on the company's shares. This compares to the latest Transurban share price of $14.29.
As for dividends, Ord Minnett is forecasting dividends of 37 cents per share in FY 2021 and then 58 cents per share in FY 2022. This will mean yields of 2.7% and 4.1%, respectively, over the next two years.
