Are you looking for dividend shares to add to your income portfolio? If you are, then the two listed below could be top options.
Both have been named as buys and tipped to provide big yields in the coming years. Here's what you need to know about them:
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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 leading property company that invests in high quality real estate assets that are leased predominantly to corporate and government tenants on long term leases.
Citi is a fan of the company and recently upgraded its shares to a buy rating with a $4.70 price target.
It notes that "the inorganic growth story remains challenged but at current price, we see relative value given the -36% discount to NTA, >7% yield (much higher than triple net peers), c. 50% of the rents indexed to CPI and a low risk income stream with c. 12 year WALE and 99.9% occupancy."
As mentioned above, the broker is forecasting some big dividend yields in the coming years. It has pencilled in dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. Based on the current Charter Hall Long Wale REIT share price of $4.02, this will mean yields of 7% and 7.2%, respectively.
DEXUS Property Group (ASX: DXS)
Another ASX dividend share to look at is Dexus. It is an Australian real estate company focused on office, industrial and retail properties.
It has been a solid performer in recent years. And pleasingly, Dexus isn't one to rest on its laurels and is always looking for ways to boost its portfolio. For example, during the last financial year, the company made a $1.5 billion acquisition of industrial assets. These assets include stakes in Jandakot Airport in Perth and a logistics centre leased to Australia Post.
Morgan Stanley is a fan of the company and has an overweight rating and $10.55 price target on its shares.
As for dividends, Morgan Stanley is forecasting dividends per share of 50.6 cents in FY 2023 and 52.3 cents in FY 2024. Based on the current Dexus share price of $7.45, this will mean yields of 6.8% and 7%, respectively.
