ASX dividend shares could be some of the smartest buys right now after multiple RBA rate cuts last year. Plus, some businesses can provide exposure to attractive Australian-based earnings, which could be wise if an investor is uncertain about the outlook for the global economy.
If businesses are undervalued, they can be particularly appealing on the dividend yield side of things because a lower valuation boosts the yield.
While the two names below aren't the most famous, it looks to me like a good time to invest in both of them.
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Centuria Industrial REIT (ASX: CIP)
This ASX dividend share is a real estate investment trust (REIT) that owns a portfolio of industrial properties across Australian metropolitan locations.
It continues to benefit from a low vacancy rate in Australian cities because of the limited space and the amount of demand for industrial properties.
Australia requires more space for fresh food and pharmaceutical demand, increased data centre demand, onshoring of supply chains and increasing e-commerce adoption.
The business has properties across the subsectors of distribution centres, manufacturing and production, transport logistics, data centres and cold storage, giving it broad exposure to the industrial sector.
In FY26, it's expecting to grow its rental earnings – as measured by the funds from operations (FFO) – per unit to between 18.2 cents to 18.5 cents. This guidance represents growth of up to 6% compared to FY25.
The distribution is being paid in quarterly instalments and the ASX dividend share expects to deliver a payout of 16.8 cents per unit in FY26, representing a year-over-year increase of 3% to 16.8 cents. It has a distribution yield of 5.1%.
It also reported $3.92 of net tangible assets (NTA) at 30 June 2025, so it's valued at an attractive 16% discount.
Adairs Ltd (ASX: ADH)
Adairs is a retailer of homewares and furniture. It has three businesses: Adairs, Focus on Furniture and Mocka.
The company has suffered a valuation decline in recent months. Over the past three months its share price has dropped around 30%.
But, for such a cyclical retailer like Adairs, this lower valuation could be the right time to pounce and then be patient.
This ASX dividend share is not priced for a lot of success over the medium-term. But, analyst estimates suggest that the company could see steadily rising earnings and dividends in the coming years.
The projection on CMC Markets suggests the ASX dividend share could generate earnings per share (EPS) of 20.1 cents in FY26, 24.1 cents in FY27 and 26.8 cents in FY28.
With those forecasts, the potential dividend per share could be 12.5 cents in FY26, 15.5 cents in FY27 and 18 cents in FY28.
At the current Adairs share price, it's valued at less than 9x FY26's estimated earnings with a possible grossed-up dividend yield of 10%, including franking credits.
The trading update in October suggested that group sales are expected to grow by at least $9 million in the first half of FY26 to between $319.5 million to $331.5 million. Sales growth is a promising sign for earnings growth, even if it's not as strong as the market was hoping for.
