There are plenty of businesses that pay income to shareholders. But only some ASX dividend shares may be worth considering for their cash payouts.
Investments that have a commitment to paying investors a high level of cash out of their profit may have a greater focus on providing a good yield.
These income businesses could be excellent ASX dividend shares in 2022 and beyond:
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BHP Group Ltd (ASX: BHP)
The resources giant is currently rated as a buy by the brokers at Macquarie Group Ltd (ASX: MQG) with an expectation of a grossed-up dividend yield of 13.2% in FY22 and 9.8% in FY23.
Macquarie is seeing a recovery of Chinese steel demand over December, whilst inventory has been falling.
BHP has benefited from good prices for some of its other commodities like copper and the iron ore price is firming.
The ASX dividend share is working on the decarbonisation and modernisation of its portfolio. Soon enough, it will be divesting its petroleum division to Woodside Petroleum Limited (ASX: WPL) whilst expanding its exposure to a greener commodity – potash.
The potash Jansen project has a very long projected life and is expected to earn a high earnings before interest, tax, depreciation and amortisation (EBITDA) margin.
Whilst the business performance is quite dependent on commodity prices year to year, its diversified portfolio can lead to less volatility, more growth avenues and opportunities.
Centuria Industrial REIT (ASX: CIP)
This real estate investment trust (REIT) owns a large portfolio of industrial that are predominately in city locations across Australia.
It is also rated as a buy by Macquarie, with a price target of $4.16. The broker is expecting Centuria Industrial REIT to pay a distribution yield of 4.3% in FY22 and 4.6% in FY23.
The ASX dividend share's property portfolio is now worth $3.8 billion, after valuations were done on most of its properties. On a like for like basis, the portfolio value increased $281 million, or 9.6%, from the previous balance sheet values.
Centuria Industrial REIT's pro forma net tangible assets (NTA) increased to $4.22 per unit at 31 December 2021, with the weighted average capitalisation rate 'firming' to 4.20%.
The Centuria Industrial REIT fund manager Jesse Curtis said:
The Australian industrial real estate market has continued to strengthen through capital value growth and yield compression. Sector tailwinds have attracted a significant wave of capital seeking to increase exposure to industrial assets. Investment activity, coupled with record low vacancy and robust tenant demand, is likely to drive strong rental growth resulting in continued appreciation of industrial asset values.
