Top ASX dividend shares to buy in June 2022

Looking to calm those volatility nerves with some new ASX dividend shares? Here are some that our Foolish contributors love right now…

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It’s been a rocky start to the trading week, to say the least. Tuesday’s session saw investors run for the hills, wiping around $80 billion in value from ASX shares in the process. This followed higher-than-expected US inflation figures and fears over rising interest rates.

During times of increasing uncertainty and volatility, many investors gravitate to ASX dividend shares for their potential to deliver regular returns that may outperform share price gains.

On that note, we asked our Foolish contributors to compile a list of ASX dividend shares they reckon would make great buying for income investors in June. Here is what the team came up with.

7 best ASX dividend shares for June 2022 (smallest to largest)

Accent Group Ltd (ASX: AX1), $685.46 million

Smartgroup Corporation Ltd (ASX: SIQ), $1.03 billion

TechnologyOne Ltd (ASX: TNE), $3.57 billion

Bank of Queensland Limited (ASX: BOQ), $4.41 billion

GQG Partners Inc (ASX: GQG), $5.06 billion

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), $8.95 billion

Telstra Corporation Ltd (ASX: TLS), $43.91 billion

(Market capitalisations as of 14 June 2022)

Why our Foolish writers love these ASX dividend shares

Accent Group Ltd

What it does: Founded in 1981, Accent Group is a distributor and retailer of footwear and apparel. The group operates more than 500 stores across Australia and New Zealand.

By Aaron Teboneras: The Accent share price has tumbled by around 50% in 2022 amid a sell-off across the broader ASX.

In the past two months alone, the footwear retailer’s shares have slumped by more than 20%. However, one broker believes these falls represent a major buying opportunity.

As reported by my Foolish colleague Mitchell, Bell Potter believes there is significant upside for Accent shares.

The broker currently has a $2.20 price target on Accent shares, representing a possible uplift of almost  80% based on Tuesday’s closing price of $1.24.

Furthermore, the board is expected to pay 5.8 cents in fully-franked dividends in FY22, giving Accent shares a current dividend yield of around 4.4%.

Motley Fool contributor Aaron Teboneras does not own shares of Accent Group Ltd.

Smartgroup Corporation Ltd

What it does: Smartgroup provides business services including salary packaging, novated leasing, fleet management, and payroll administration to assist employers with outsourcing employee benefits.

By Bernd Struben: Over the past three years, Smartgroup’s business model has proven itself in good times and bad. The company is currently enjoying strong cash generation and claims a healthy balance sheet. But it was also resilient during the pandemic lockdowns, still generating profits and paying dividends throughout 2020.

Prior to yesterday’s general market sell-off, the Smartgroup share price had bucked the wider selling trend in 2022 and was up around 1% for the year. Following Tuesday’s falls, however, Smartgroup’s shares are now sitting around 4% lower year to date. 

Based on Tuesday’s closing price of $7.44, the company is paying a fully franked dividend yield of 4.9%. Smartgroup trades on a price-to-earnings (P/E) ratio of around 16 times, which I believe looks like good value for a company generating strong cash flow.

Motley Fool contributor Bernd Struben does not own shares of Smartgroup Corporation Ltd.

TechnologyOne Ltd

What it does: This S&P/ASX 200 Index (ASX: XJO) constituent is one of Australia’s leading providers of enterprise software solutions. The company offers a plethora of software-as-a-service (SaaS) products spanning dozens of industries, from student management to business analytics.

By Mitchell Lawler: Finding a dividend-paying share that might be less at risk in a high-interest rate environment is a challenge. However, TechnologyOne appears to be a good candidate on paper.

This long-standing tech company has embedded itself in market areas that are less vulnerable to the ramifications of rising rates. For example, around 76% of TechnologyOne’s annual recurring revenue in the latest half-year was derived from local government, education, and government customers.

While a dividend yield of 1.36% may seem on the slim side, the dividends per share have been steadily rising for nearly a decade straight. Goldman Sachs recently stuck a $13.30 price target on TechnologyOne shares, which equates to a potential upside of around 26% based on Tuesday’s closing price of $10.55.

Motley Fool contributor Mitchell Lawler does not own shares of TechnologyOne Ltd.

Bank of Queensland Limited

What it does: Bank of Queensland is an ASX 200 banking share. Although it is not a member of the big four, it still has a significant presence in the Australian banking sector.

By Sebastian Bowen: Bank of Queensland could be an ASX dividend share worth considering for income investors as we approach 2022’s halfway point. Bank of Queensland is a share that’s often overlooked in favour of its larger banking counterparts. However, it still offers many of the benefits that its larger peers do, not least being a hefty dividend yield. On recent pricing, BOQ shares offer a trailing and fully-franked dividend yield of 6.73%.

Recently, broker Goldman Sachs predicted that Bank of Queensland will be able to raise its dividend even higher over the rest of FY2022 and FY2023. That could mean investors who get in today could be lucky enough to get a yield-on-cost of over 8% by next financial year.

Motley Fool contributor Sebastian Bowen does not own shares of Bank of Queensland Limited.

GQG Partners Inc

What it does: GQG Partners is one of the largest fund managers on the ASX with a market capitalisation of around $5.06 billion. It offers investment solutions spanning international, global, and emerging markets.

By Tristan Harrison: Broker Morgans currently rates GQG shares as a buy. In terms of the dividend yield, based on Tuesday’s closing price of $1.63, the company is expected to pay a 7.3% yield in FY22 and 7.9% in FY23.

GQG recently released its May 2022 monthly funds under management (FUM) update which showed that FUM had increased by 4.6% over the month of May to US$94.6 billion, up from US$90.4 billion in April 2022. So, despite recent market volatility, GQG is still experiencing sizeable fund inflows.

The business offers a range of dividend strategies for income investors and is also looking to expand into additional markets such as Australia and Canada.

Motley Fool contributor Tristan Harrison does not own shares of GQG Partners Inc.

Washington H. Soul Pattinson and Co. Ltd

What it does: Investment house Washington H. Soul Pattinson and Co – colloquially known as Soul Patts – curates a diversified portfolio of equities, property, and loans. It has been listed on the ASX since 1903.

By Brooke Cooper: Inflation is on the rise, interest rates are taking off, and markets have struggled in 2022 so far. What many investors seek in times like these is certainty.

And while nothing on the share market is guaranteed, Soul Patts’ historically strong dividends might help ease the minds of anxious investors.

The company has bumped its dividends every year since 2000. Soul Patts credits its success to its flexible mandate, helping create a diverse investment portfolio.

On top of that, the Soul Patts share price is around 20% lower than it was at the start of this year, meaning it might offer a good entry point for new investors.

Motley Fool contributor Brooke Cooper does not own shares of Washington H. Soul Pattinson and Co. Ltd.

Telstra Corporation Ltd

What it does: Telstra is Australia’s leading telecommunications company and one of the largest companies on the Australian share market.

By James Mickleboro: With the market going through an extremely volatile period and inflation rearing its ugly head, I think Telstra could prove to be a good option for income investors.

This is due to the company’s defensive qualities, new inflation-linked mobile pricing, leadership position in the telco industry, and its strong, free-cash-flow generation.

I believe its cash flow will allow Telstra to maintain its dividend at a fully-franked 16 cents per share in the near term before it eventually grows it once the new T25 strategy starts to bear fruit. For now, based on the current Telstra share price of $3.75, this will mean yields of around 4.3%.

Motley Fool contributor James Mickleboro does not own shares of Telstra Corporation Ltd.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended SMARTGROUP DEF SET, Telstra Corporation Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Accent Group and TechnologyOne 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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