Companies listed in Australia paid out U$28.6 billion in dividends last quarter, according to the latest Janus Henderson Global Dividend Index.

The likes of BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) were among the world's top 10 dividend payers in the September quarter, while Commonwealth Bank of Australia (ASX: CBA) and Fortescue Metals Group Limited (ASX: FMG) made the top 20.

But there are plenty of ASX dividend shares likely flying under the radar. Here are five Aussie stocks you may not have known pay investors dividends.

5 under-the-radar ASX dividend shares

The first ASX share one may not have noticed pays dividends is oOh!Media Ltd (ASX: OML).

The out-of-home advertising company has been handing shareholders a portion of its profits since 2015, with a short break during the pandemic.

It has paid out 2.5 cents per share over the last 12 months, leaving it with a 1.8% trailing dividend yield.

Perhaps surprisingly, ASX newbie Best & Less Group Holdings Ltd (ASX: BST) also pays dividends.

The clothing retailer listed in July 2021 and has since offered shareholders two dividends, worth 11 cents and 12 cents, respectively. That leaves the stock with a notable 9.9% yield.

Interestingly, Lynch Group Holdings Ltd (ASX: LGL) is in a similar boat to Best & Less.

The floral grower and wholesaler floated on the ASX in April 2021 and has since offered two 6-cent dividends per share. Right now, it trades with a 7% dividend yield.

Another under-the-radar ASX dividend payer might be trucking share Lindsay Australia Ltd (ASX: LAU).

It's consistently paid dividends for decades, handing out 3.2 cents per share over the last 12 months. That leaves Lindsay's stock with a 4.8% dividend yield.

Finally, newly crowned S&P/ASX 200 Index (ASX: XJO) stock Lovisa Holdings Ltd (ASX: LOV) also offers investors a portion of its profits. Indeed, it nearly doubled its offerings over the last 12 months.

The fashion jewellery retailer has handed shareholders 74 cents per share over that time, leaving it boasting a 3.2% yield.

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Who decides if they're good value? That's for each ASX investor to work out themselves. Meantime, brokers look at loads of businesses and rate whether they are buys or not.

Share price movements can change the attractiveness of a business in the eyes of experts.

With that in mind, here are two ASX dividend shares that are currently rated buys.

Lynch Group Holdings Ltd (ASX: LGL)

Lynch describes itself as Australia's leading vertically-integrated wholesaler and grower of flowers and potted plants.

Broker Ord Minnett says it's a buy with a price target of $3.30. That's a possible rise of about 50%.

The broker noted a recent update from Lynch, which included commentary regarding elevated costs of energy and logistics.

The company said that in Australia, revenue continues to "trend well" with a growth rate of at least 6% expected in the second half of FY22. It's actively engaging on pricing and range settings with customers to maximise value and manage the margin.

Costs have increased faster than the business has been able to recover through range and price management, with these adjustments typically lagging costs by between three to six months.

The China business was experiencing "strong" market conditions until the recent COVID-19 lockdowns.

Ord Minnett thinks the Lynch grossed-up dividend yield is going to be 7.9% in FY22 and 10.5% in FY23. The existing dividend policy is to pay out at least 50% of annual underlying net profit after tax (NPAT)

The ASX dividend share is expecting an easing of freight rates to reflect the increased airfreight capacity in the first half of FY23.

Rio Tinto Limited (ASX: RIO)

Rio Tinto is one of the largest mining businesses in the world. Its main earnings generator is iron ore, but there are other commodities that it has exposure to including bauxite, aluminium, copper, lithium, and titanium dioxide slag.

Broker Macquarie rates Rio Tinto shares as a buy with a price target of $135. That's a possible rise of about 15% for this ASX dividend share.

There are expectations that Rio Tinto will pay a grossed-up dividend yield of 15.8% in FY22 and 10.9% in FY23.

Rio Tinto doesn't have much control over the prices of the commodities it produces. However, it is in charge of production. In the first quarter of 2022, it saw a 15% quarter-on-quarter reduction in iron ore production. Aluminium and copper production were also down quarter-on-quarter.

Macquarie recognises that the current commodity prices are helping Rio Tinto, while copper could be a good growth avenue for the business with the Oyu Tolgoi project.

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For example, software maker Xero Limited (ASX: XRO) is trading at a price-to-earnings ratio of more than 1,000. That's despite shaving 7.28% off its share price this year.

Shares for online retailer Cettire Ltd (ASX: CTT) are going for more than 200 times earnings, even though they suffered a 20% crash before a trading halt on Tuesday.

As value stocks have raged upwards, many experts have said the dip in growth shares is a golden buying opportunity. But with so many businesses still expensive, which ones do they mean?

Wilson Asset Management portfolio manager Tobias Yao has an idea.

Who wants 11 times PE ratio for a growth share?

Yao declared last week that he had found a business with tremendous growth potential, whose shares are trading at a value price.

"Lynch Group Holdings Ltd (ASX: LGL) is a recent IPO [initial public offering], but it's actually a business that's been around for decades," he told a Wilson video.

"It is the number 1 floral supplier in Australia."

Lynch Group debuted in April as a public company with already a rich 106-year history under its belt as a private business. The Lynch Group share price went for $3.60 upon listing on the ASX and was trading at $3.70 at market close on Tuesday afternoon. 

Yao reckons the market is under-recognising the medium-term growth drivers for the business, which also sells flowers in the Chinese market.

"We think there will be earnings upgrades and perhaps a couple of inorganic M&A opportunities over time."

But the best thing right now, according to Yao, is the appealing price.

"It's on 11 times PE," he said.

"We think this is a growth company priced [on] a value multiple."

Already beating prospectus forecasts

Earlier this month, the western Sydney-headquartered company released a positive performance upgrade for the current financial year.

"For the upcoming period ending 27 June 2021, Lynch anticipates reporting a bumper result. This is expected to be well up on the earnings guidance outlined in its prospectus, released in early April on the ASX," reported The Motley Fool's Aaron Teboneras.

"As such, net profit after tax and amortisation (NPATA) is forecast to come in between $31 million and $32 million. Originally, Lynch predicted NPATA to stand at $28.7 million."

The post Here's an ASX growth share priced like a value stock: analyst appeared first on The Motley Fool Australia.

At the time of writing, Lynch Group shares are fetching $3.73, up by 4.19%.

Trading update

Investors are buying up Lynch Group shares following the company's positive update to the ASX.

In today's statement, Lynch announced it's experiencing strong growth in both of its markets in Australia and China.

Last month, the company delivered its largest floral event of the year in Australia — Mother's Day. This saw Lynch make a record investment in chartered freight and merchandising hours to meet the robust demand.

As well, the company continues to benefit from improving consumer perceptions of supermarket floral quality. As such, its Australian segment is in line to meet its forecast financial performance at the end of FY21.

Moving onto China, Lynch stated its Van den Berg Asia integration is running smoothly. The company's currently constructing additional growing capacity to service increasing demand across Yunnan Province. To put that in context, the Chinese retail floral market is estimated to be worth around $19 billion, compared to Australia's $1.37 billion.

Pleasingly, Lynch has benefitted from recent stronger than expected pricing in China. This, in turn, enabled the company to increase production to cater for demand. As a result, Lynch's Chinese business is expected to exceed its forecast financial performance for the current financial year.

Outlook

For the upcoming period ending 27 June 2021, Lynch anticipates reporting a bumper result. This is expected to be well up on the earnings guidance outlined in its prospectus, released in early April on the ASX.

As such, net profit after tax and amortisation (NPATA) is forecast to come in between $31 million and $32 million. Originally, Lynch predicted NPATA to stand at $28.7 million.

In addition, in the first half of FY22, NPATA is projected to be around the same as stated in the prospectus – $14.7 million. This implies a proforma NPATA of $31.6 million to $32.6 million for the current calendar year (ending 26 December 2021)

Lynch is scheduled to report its FY21 results on or around 26 August 2021.

About the Lynch Group share price

Founded in 1915, Lynch is a vertically integrated wholesaler and grower of flowers and potted plants. It is the largest wholesaler of floral and potted products to Australian supermarkets. The company also operates in China as a leading grower and wholesaler of premium flowers.

Since listing on the ASX boards in April for a price of $3.60 apiece, Lynch Group shares have edged slightly higher. The company's share price reached an all-time high of $3.86 on 20 May.

On valuation grounds, Lynch commands a market capitalisation of roughly $455 million, with over 122 million shares outstanding.

The post Why the Lynch Group (ASX:LGL) share price is climbing today appeared first on The Motley Fool Australia.

However, despite the market pushing notably higher, it hasn't been a great debut for the wholesaler of floral and potted products.

At the time of writing, the Lynch Group share price is fetching $3.48. This is down almost 3.5% from its listing price of $3.60.

What is Lynch Group?

Lynch Group was founded in Australia all the way back in 1915 by the family of Leo Lynch.

It was initially a floral grower and wholesaler but eventually expanded to become a vertically integrated wholesaler which pioneered supply to major supermarkets and into the Chinese market.

In 2015, Next Capital acquired a majority interest in the Lynch Group to accelerate its growth trajectory.

Since then, the company has successfully continued to execute on its growth strategy, which included the acquisition of a 20% interest in VDB Asia – a premium rose grower in China with two farms focused on production for the Chinese domestic market.

Some of the proceeds from the IPO will be used to acquire the remaining 80% stake in VDB Asia.

What is its market opportunity?

According to its prospectus, the company operates in an Australian market worth ~$1.4 billion and a Chinese floral sector estimated to be worth $19 billion.

Management notes that flowers are a unique product category that are highly perishable and have a short vase life. This results in a complex and time‑sensitive supply chain with high barriers to entry.

Furthermore, access to robust breeds, premium growers, delicate handling processes and end‑to‑end cool‑chain integrity are important in ensuring that flowers reach the desired end‑market in a saleable condition and with optimal vase life. This is something Lynch Group has in abundance.

Current Australian customers include Aldi, Bunnings, Coles Group Ltd (ASX: COL), David Jones, IGA, and Woolworths Group Ltd (ASX: WOW). Whereas in China, the company typically sells its products to wholesalers via its WeChat-based web shop.

Forecasts

Lynch Group is expecting to deliver strong earnings growth in calendar year 2021.

Its prospectus forecast is for pro forma revenue of $329 million, pro forma EBITDA of $54 million, and pro forma NPATA of $29.3 million. This means that its pro forma revenue and EBITDA will be up 16.1% and 25.7%, respectively, year on year.

Lynch Group's CEO, Hugh Toll, appears positive on the future.

Commenting today, he said: "Over our 100-year history, Lynch Group has established itself as a pioneer in the Australian floral industry becoming the #1 wholesaler and partner to supermarkets in the floral category. Our know-how, systems and expertise are proving highly transferable into the significantly larger and fast-growing Chinese market, where we are replicating the success of our vertically integrated Australian model."

"Led by a highly experienced management team and Board, we are well positioned to benefit from the continued structural shift to supermarket channels in the Australian market. There are also compelling opportunities in the developing Chinese market to continue to increase our production capacity, and partner with more retailers to grow our direct-to-consumer channel as we build out additional processing capacity in China," he concluded.

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