The next year is just around the corner. There are several ASX dividend shares that are buy-rated by experts for 2022 that could provide attractive income for at least the next couple of years.
Just because a business pays a dividend, doesn't automatically make it a buy. For example, plenty of analysts actually rate the Commonwealth Bank of Australia (ASX: CBA) share price as a sell right now.
But these two ASX dividend shares could be income leaders:
Adairs Ltd (ASX: ADH)
Adairs is rated as a buy by the broker Morgans, with a price target of $4.80. This suggests a potential rise of the Adairs share price by around 25% over the next 12 months, if the broker is right.
Morgans thinks Adairs is going to pay a grossed-up dividend yield of 8.6% in FY22 and 10.8% in FY23.
The broker's most recent thoughts have been on the acquisition of Focus on Furniture, which Morgans and management think will add at least around 10% to profit in FY23 once fully integrated into the Adairs business.
Adairs is now a business that has a sizeable presence in both homewares and furniture. In FY21, Focus made revenue of over $150 million with a network of 23 stores and a small but growing online channel. The ASX dividend share sees strong growth potential which could drive sales to more than $250 million over the next five years with a national store rollout and growing online sales.
The company is planning more profit growth from opening more stores, shifting to bigger stores (which are substantially more profitable than smaller ones), being more efficient with costs and growing online sales.
According to Morgans, the Adairs share price is valued at 9x FY23's estimated earnings.
Brickworks Limited (ASX: BKW)
Brickworks has maintained or increased its normal dividend every year for the last 45 years.
The ASX dividend share is currently rated as a buy by the broker Ord Minnett, with a price target of $26.20.
This broker is expecting Brickworks to pay a grossed-up dividend yield of 3.6% in FY22 and 3.75% in FY23.
Brickworks is experiencing a very high level of demand for land for industrial properties through its joint venture property trust. Surplus operational Brickworks land is sold into this trust. Once a lease pre-commitment is secured the serviced land can be used as security, with debt funding used to cover the cost of constructing the facilities.
At the end of FY21, Brickworks' 50% share was $911 million, with the assets generating around $89 million in gross annual rent.
Not only are there two huge facilities being built for Amazon and Coles Group Ltd (ASX: COL), but other large properties are being built for Woolworths Group Ltd (ASX: WOW), Australia Post and Xylem.
Once those facilities (and other pre-committed developments) are completed, it was expected to result in an increase in leased assets of around $1.2 billion and gross rent of $50 million over the next two years.
The ASX dividend share also recently announced that the completion of a new brick plant will allow consolidation and the release of 75 hectares of land to be sold into the property trust, extending the development pipeline to meet the unprecedented demand for industrial development.
Brickworks also owns a large amount of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares, which provides steadily increasing dividends to Brickworks, and diversification.
