I think there are some good opportunities to find when looking at All Ordinaries (ASX: XAO), or All Ords, ASX dividend shares. Getting good value and receiving a big dividend could be a winning combination.
Businesses that have fallen heavily due to concerns about what may happen next with the economy could be too good to ignore.
Share prices can be oversold when there is a peak of uncertainty about what's going to happen and what could improve things.
I believe the long term looks promising for these two All Ords ASX dividend shares.
Adairs Ltd (ASX: ADH)
Adairs is a leading retailer of homewares and furniture. It now operates three businesses – Adairs, Mocka and Focus on Furniture.
While profitability may not be as high as in FY21, the company is still expected to pay a solid dividend in FY23 and FY24. According to estimates on CMC Markets, Adairs could pay a grossed-up dividend yield of 12.3% in FY23 and 14.4% in FY24.
The Adairs share price is down around 50% in 2022 to date.
I think the All Ords ASX dividend share's earnings can benefit in the long run from its increasing total retail floorspace (which includes upsizing stores), growing online sales, finding synergies between its businesses, benefitting from the new national distribution centre, and growing its membership numbers.
According to estimates on CMC Markets, Adairs shares are valued at 7x FY23's estimated earnings and 6x FY24's estimated earnings. That's a very low forward price-to-earnings (p/e) ratio in my opinion.
Baby Bunting Group Ltd (ASX: BBN)
Baby Bunting is a compelling retailer in my opinion. It's a leader in selling products for babies and toddlers such as prams, car seats, toys, clothes, and furniture.
I've been impressed by the company's ability to keep generating growth. In FY22, it grew sales by 8.3% to $507.3 million and online sales soared 24.2% to $112 million. The gross profit margin improved by 151 basis points to 38.6%, and statutory net profit after tax (NPAT) increased 14.6% to $19.5 million.
In terms of the dividend, Baby Bunting increased its full-year dividend by 10.6% to 15.6 cents per share. According to CMC Markets, the business is projected to pay 17.8 cents per share in FY23 and 20.4 cents in FY24. This would translate into grossed-up dividend yields of almost 6% and 6.8%, respectively.
The All Ords ASX dividend share's dividend and profit could grow further as Baby Bunting grows its store network in Australia and New Zealand, increases its level of online sales and private and exclusive sales, benefits from operating leverage and expands its product range. I think it looks good value after a 23% fall in 2022.
