If you’re in the market for some dividend shares and are looking for defensive options, then you may want to look at the two listed below.
Both these dividend shares have defensive qualities and are rated as buys by analysts. Here’s what you need to know about them:
Charter Hall Social Infrastructure REIT (ASX: CQE)
The first defensive 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 with a focus on social infrastructure properties. These are assets such as bus depots, police and justice services facilities, and childcare centres.
These are all in demand with end users and command very long leases. In fact, at the last count the company had a 100% occupancy rate and a weighted average lease expiry of 14.6 years.
This caught the eye of Goldman Sachs, which has put a conviction buy rating and $4.20 price target on its shares
Goldman is also expecting some generous dividends. It is forecasting dividends per share of 17.2 cents in FY 2022 and 18.3 cents in FY 2023. Based on its current share price of $3.19, this implies yields of 5.4% and 5.7%, respectively.
Another defensive ASX dividend share for investors to consider is retail giant, Coles.
It is one of Australia’s largest retailers with a growing network of supermarkets, liquor stores, and convenience stores across the country.
Unlike most retailers, Coles looks well-placed to benefit from rising inflation. Particularly given how the supermarket giant’s recent quarterly update showed no signs of consumers trading down in response to inflation.
Analysts at Citi noted this, commenting: “Coles provided its 3Q22 trading update with sales in line with our expectations. There were no observable signs of trading down or lower volumes in response to higher food inflation.”
In light of this, the broker has put a buy rating and $19.30 price target on its shares.
As for dividends, the broker is forecasting fully franked dividends of 63 cents per share in FY 2022 and then 72 cents per share in FY 2023. Based on the current Coles share price of $16.81, this will mean yields of 3.75% and 4.3%, respectively.