Top ASX dividend shares to buy in 2022

Looking to bolster your income in 2022? Here are some of the ASX dividend shares experts reckon are worth considering.

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Over the last couple of years, decent returns from term deposits have been harder to find than an Aussie visa at a tennis tournament. As a result, investors have been increasingly looking to ASX dividend shares as a potential source of income. Now that 2022 is upon us, we asked our Foolish contributors to compile a list of some of the ASX dividend shares experts are picking as solid investments this year. Here’s what the team came up with…

Tristan Harrison: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Pattinson is the ASX share with the longest, consecutive growth in its annual dividend. The company has grown its dividend payments every year since 2000.

Sol Patts has a diversified portfolio that is predominately defensive and largely uncorrelated, giving it reliable cash flow to pay growing dividends. The company is invested in telecommunications, resources, building products, property, agriculture, financial services, and more.

Soul Pattinson regularly invests in opportunities to grow its cash flow, capital value and dividend. It is looking at themes like healthcare, the energy transition, agriculture, financial services, and education.

Based on the Sol Patts share price of $30.13 at Friday’s close, the company offers a grossed-up dividend yield of approximately 3%.

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Co. Ltd.

Brooke Cooper: Accent Group Ltd (ASX: AX1)

Accent Group operates more than 600 stores and 20 online platforms, spread across 26 brands. Those who frequent Australian shopping centres will likely be familiar with its businesses, which include Skechers, Platypus, and Hype.

Accent Group ended financial year 2021 with an additional 83 stores and is on track to operate more than 700 stores this financial year.

The company’s dividends are fully franked and represent a 4.84% yield based on the Accent Group share price of $2.33 at the close of trade on Friday. Additionally, UBS has slapped the company’s shares with a $3 price target, representing possible upside of almost 30%.

Motley Fool contributor Brooke Cooper does not own shares of Accent Group Ltd.

Sebastian Bowen: Westpac Banking Corp (ASX: WBC)

Westpac is an ASX divided share that might be worth a look at as we start the new year. As one of the big four ASX 200 bank shares, Westpac has long held a reputation for being a dividend heavyweight.

Despite an unwelcome interruption to this stream of dividends in 2020 due to the COVID-19 pandemic, Westpac rebounded with a vengeance last year. Its two most recent dividend payments give this bank a trailing dividend yield of 5.43% on current pricing, the highest of the ASX banking sector. Grossed up with Westpac’s full franking, the bank currently offers a yield of more than 7.76%.

Motley Fool contributor Sebastian Bowen does not own shares of Westpac Corp.

Bernd Struben: Super Retail Group Ltd (ASX: SUL)

Super Retail Group ranks among Australia’s 10 biggest retail companies, with a market capitalisation of around $2.7 billion. The company’s four retail brands – Supercheap Auto, Rebel Sport, BCF (Boating, Camping and Fishing), and Macpac – target a broad customer base of motoring, sporting and outdoor enthusiasts.

Super Retail Group has more than 670 retail stores and 12,000 employees across its Australian, New Zealand and Chinese operations. Its online sales are also growing strongly. The company has a strong balance sheet and trades at a trailing price-to-earnings (P/E) ratio of 9.50 times.

Based on the Super Retail Group share price of $12.05 at Friday’s close, the company pays a dividend yield of around 7.3%, fully franked.

Motley Fool contributor Bernd Struben does not own shares of Super Retail Group Ltd.

Aaron Teboneras: Dicker Data Ltd (ASX: DDR)

Dicker Data is an Australian distributor of computer hardware, software, and related products. Its vendor partners include many of the world’s leading IT names.

Dicker Data services approximately 7,000 retailers which, in turn, sell to clients ranging from small and medium-sized enterprises to large corporate businesses.

In its third-quarter update, the company reported double-digit growth for both total revenue and profit before tax. Over the past 12 months, Dicker Data has delivered dividends totalling 37.5 cents. This represents a dividend yield of 2.73%, based on Friday’s closing share price of $13.69. Furthermore, the Dicker Data share price has jumped more than 30% since this time last year.

Motley Fool contributor Aaron Teboneras does not own shares of Dicker Data Ltd.

James Mickleboro: Woodside Petroleum Limited (ASX: WPL)

This energy producer has been tipped as a buy by the team at Morgans. This is partly due to its impending merger with the petroleum assets of BHP Group Ltd (ASX: BHP). Morgans believes the merger is transformative and that Woodside is getting the better end of deal.

The broker currently has an add rating and $29.95 price target on the company’s shares. It is also forecasting fully-franked dividends of $1.21 per share in FY 2022 and then $1.06 per share in FY 2023. Based on the Woodside share price of $22.70 at Friday’s close, this will mean yields of around 5.3% and 4.7%, respectively.

Motley Fool contributor James Mickleboro does not own shares of Woodside Petroleum Limited.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Dicker Data Limited, Super Retail Group Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Dicker Data Limited, Super Retail Group Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Accent Group and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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