3 insanely cheap dividend stocks to buy on the ASX right now

It could be a great time to look at these cash flow kings.

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The great thing about the ASX share market is that we can find cheap dividend stocks that provide an excellent amount of cash flow.

When a business is trading on a low multiple of its earnings – called the price/earnings (P/E) ratio – or if it's trading at a large discount to the underlying assets, it opens up the potential for a large dividend yield.

I believe the below three businesses have a very good chance of delivering good dividends in the short term and the long term.

Shaver Shop Group Ltd (ASX: SSG)

Plenty of ASX retail shares could be good opportunities at the moment following declines because of the weaker outlook amid the inflation problems and high cost of living.

But, I think hair removal products could still see solid demand – people's hair isn't going to stop growing just because GDP growth per person is weaker. The company is able to offer good prices because of its scale, with an array of exclusive products.

Shaver Shop has an impressive record, it has grown its dividend every year since 2017. Not many retailers grew their payout in FY20.

There's no guarantee the dividend will keep increasing, but the company does have an intention to keep rewarding shareholders with a good dividend.

It can potentially offset some same-store sales pain by opening more stores across Australia and New Zealand.

According to the projections on Commsec, the dividend stock is valued at under 9 times FY24's estimated earnings with a potential FY24 grossed-up dividend yield of 13.8%.

GQG Partners Inc (ASX: GQG)

GQG is my favourite high-yield dividend stock at the moment. I think it's very cheap for what's on offer with this business. That's why I've been covering it a lot recently.

It's a fund manager that's mainly based in the US, but it's expanding in places like Canada and Australia.

The ASX dividend stock is seeing an impressive amount of net inflows – in the first 10 months of 2023, it has experienced net inflows of $8.5 billion. When combined with longer-term capital growth of the underlying funds under management (FUM), GQG has good tailwinds for profit growth and dividend growth over time because a large majority of its earnings come from management fees rather than performance fees.

The company has committed to a dividend payout ratio of paying out 90% of its distributable earnings as a dividend.

On Commsec, the projection is the business will pay an annual dividend per share of 15.4 cents in FY24. That suggests the company could pay a dividend yield of 11.5%. It also implies the business is valued at under 8 times FY24's distributable earnings.

Bailador Technology Investments Ltd (ASX: BTI)

This ASX dividend stock is a company that invests in unlisted technology companies. Bailador looks for businesses with international revenue generation, a global addressable market, good unit economics, the ability to make recurring revenue, are founder-led and are in the expansion phase of the business operations.

When you put all of those factors together, the underlying businesses are very promising. Bailador already has a good track record of making strong long-term returns on its investments, such as the experience with InstantScripts which was recently sold to Wesfarmers Ltd (ASX: WES).

In the October update, the company said that its post-tax net tangible assets (NTA) per share was $1.55. That suggests the Bailador share price (of $1.16) is valued at a 25% discount.

The company is committed to paying a 4% dividend yield on its pre-tax NTA, which was $1.65 per share at the end of October 2023. However, with the ASX dividend stock's share price sitting at $1.16, this implies a fully franked yield of 5.7%, or 8.1% grossed-up.

Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments and Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Bailador Technology Investments. 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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