Why I think these are the best ASX dividend shares to buy right now

Here are the reasons I believe these two ASX dividend shares are trading at attractive levels.

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Key points

  • Dicker Data and Fortescue shares have dropped in value over the past couple of months following a broader market slump 
  • Dicker Data intends to pay 13 cents per share quarterly dividends for FY22 after delivering a robust first quarter performance 
  • On the other hand, Fortescue could be a buy given its handsome dividends as well as increased shipping guidance for FY22 

The ASX market has been heavily sold off this month and has presented some lucrative buying opportunities.

Particularly now that the earnings season for a majority of the companies including the banks is past us.

Trawling through financial reports will give you a good financial snapshot of the company you may be looking to buy in. 

As Warren Buffett once said, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Below, are two dividend shares that I would be happy to pick up today.

Dicker Data Limited (ASX: DDR)

This leading Australian wholesale and distributor of computer hardware and software could be a great option for investors.

Dicker shares have been beaten down in 2022 despite the company recording impressive growth in its first quarter trading update.

Since late March, the Dicker Data share price has fallen by 18% to finish at yesterday’s closing price of $12.52.

Management highlighted that it expects to see gross margin lift to 9% for the full year. This is an improvement over the 8.6% achieved in the first half.

Furthermore, the board noted that it intends to pay a fully-franked quarterly dividend of 13 cents per share for FY22. Notably, this will bring the full-year dividend to 54 cents per share, which represents a 44% increase year on year.

I think that Dicker Data is trading at bargain levels and would class it as a buy for income investors.

Fortescue Metals Group Limited (ASX: FMG)

Regardless of being one of the world’s largest iron ore producers, the Fortescue share price has tumbled in recent times.

In mid-March, the company’s shares hit a year to date low of $16.87 following a slump in global iron ore prices.

However, it wasn’t long after before that the price of the steel making ingredient soared above US$160 per tonne.

Since then, Fortescue shares have recovered some ground but remain well below its year to date high of $22.99.

At Tuesday’s market close, the company’s shares closed at $19.39. When comparing with the above 2022 high, this reflects a decline of around 15%.

In Fortescue’s trading update for the three months ending 31 March, management highlighted a record third quarter operating performance.

The company said that it expects this to “contribute to strong cash flow generation and upgraded guidance for full year shipments”.

When looking at its dividends, the board paid an interim dividend of 86 cents per share in March.

While considerably lower than the $1.47 per share distributed to shareholders in H1 FY21, Fortescue could make inroads again.

This is due to the company anticipating shipment guidance of between 185 to 188 million tonnes for FY22. This compares to its previous guidance of 180 to 185 million tonnes.

With higher shipments in the midst of firm iron ore prices, this could amplify revenue realisation for the company.

In summary, I believe that the iron ore miner still has a lot of runway left given its attractive share price.

In my opinion, Fortescue is a solid buy for investors seeking shareholder value and dividend growth.

Motley Fool contributor Aaron Teboneras has positions in Dicker Data Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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