There are many ASX dividend shares that have gone through share price pain in 2022 as inflation and higher interest rates hurt valuations.
However, there are a few that have been sold off not just because of an interest rate valuation reset, but also for other reasons. Now they find themselves close to 52-week lows.
Time will tell whether they will be able to recover, though they are expected to pay sizeable dividends in the meantime.
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Baby Bunting Group Ltd (ASX: BBN)
Baby Bunting is a leading retailer of baby products like prams, car seats, toys, furniture, and so on.
The Baby Bunting share price has suffered. It's currently down more than 50% in 2022. In terms of its expected dividends, Commsec numbers currently suggest an annual dividend of 14 cents per share. That translates into a forward grossed-up dividend yield of 7.7%.
So what's going on for the ASX dividend share? The sell-off accelerated after the AGM update. As at 7 October 2022, financial year-to-date total sales growth was 12%. But, despite that, the first quarter gross profit margin was down 230 basis points and the FY23 first-quarter pro forma net profit after tax (NPAT) was $3 million lower than the first quarter of FY22.
The business highlighted that over the last few years, it has made significant gross profit margin gains. It continues to emphasise value and maintain entry price points, despite competitors discounting top-selling items. There have been some unrecovered cost increases where input costs have risen faster than retail prices. The loyalty program has also caused a reduction in the gross margin.
Management says the business has plans to address the first half impacts and recover earnings over the full year. The company is also expected to open eight new stores during the year, with six in Australia.
Collins Foods Ltd (ASX: CKF)
KFC and Taco Bell franchisee business Collins Foods has seen its share price sold off by more than 40% in 2022 to date.
In FY23, it's expected to pay an annual dividend of 25 cents per share. This would translate into a grossed-up dividend yield of 4.6% according to Commsec.
The ASX dividend share recently reported its FY23 half-year result which showed a 15% rise in revenue and statutory NPAT of $11 million, down from $26.4 million in the prior corresponding period.
The numbers included $11.9 million of impairments relating to eight Taco Bell restaurants. Management said it's a challenging landscape as it suffers from inflation pressures. Margin pressures are also expected to remain for the rest of FY23 and it's holding off on opening more Taco Bells beyond the planned five.
Medibank Private Limited (ASX: MPL)
The Medibank share price has suffered from a sell-off as the company told investors about a cybersecurity problem with hackers stealing important information.
The ASX dividend share is currently down 14% for the year as investors digest what this may mean for policyholder numbers and growth.
Commsec has an estimated the possible FY23 dividend at 14 cents for Medibank. This would translate into a grossed-up dividend yield of 6.8%.
Time will tell how much damage this does to the company's profit, or if it does much at all.
Medibank is now heavily focused on improving its cybersecurity systems.
