In this period of volatile returns, the ability to receive cash payments as dividends (or distributions) from ASX dividend shares could be very useful and more consistent.
Brokers are always on the lookout for investment opportunities. If they think that a business is at good value, they'll rate it as a 'buy', 'outperform' or something similar.
Some businesses are also expected to pay attractive dividends or distributions in FY22.
These two ASX dividend shares are rated as buys:
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Centuria Office REIT (ASX: COF)
This real estate investment trust (REIT) is rated as a buy by at least three brokers, including Morgans.
The broker has a buy rating on the business with a price target of $2.50. That's approximately 10% higher than where it is today.
As the name may suggest, it provides exposure to office real estate, it's the largest in Australia. Centuria says that it's predominantly exposed to metropolitan and near city office markets that are well connected to transport and lend themselves to affordable rents.
When the ASX dividend share released its FY22 first half result, it said that it has 23 assets worth $2.3 billion, with a portfolio occupancy of 94.3% and a weighted average lease expiry (WALE) of 4.3 years.
The FY22 funds from operations (FFO) – the rental profit – is now expected to be 18.3 cents per unit. This is expected to fund a forecast FY22 distribution per unit of 16.6 cents.
At the current Centuria Office REIT share price, its guidance translates into a FY22 yield of 7.4% and further growth in FY23.
Atlas Arteria Group (ASX: ALX)
This business is a global toll road operator. It is smaller than Transurban Group (ASX: TCL), but still has a very sizeable market capitalisation of $6.1 billion according to the ASX.
It owns, operates and develops toll roads. Atlas Arteria wants its roads to reduce travel time, give greater time certainty, reduce fuel consumption and carbon emissions.
The business has investments in toll roads in France, the US and Germany.
Atlas Arteria recently announced its full-year result for the 12 months to December 2021.
Traffic is continuing to recover despite the ongoing impacts of COVID. Weighted average traffic in 2021 was 18.6% higher than 2020 and only 8.4% below 2019.
It made statutory net profit after tax (NPAT) of $163.7 million, compared to a net loss of $99.2 million in 2020. Net profit after tax excluding notable items was $179.1 million, up from 2020's net profit of $26.2 million.
The ASX dividend share is rated as a buy by at least four brokers, including Credit Suisse which has a price target of $7.15. That's more than 10% higher than today's level.
Credit Suisse is expecting distribution growth in FY22, with a projected yield of 6.5%.
