To The Moon

If you’re looking for some ASX dividend shares to add to your income portfolio, then you might want to look at the ones listed below.

Here’s what you need to know about these dividend shares:

Adairs Ltd (ASX: ADH)

It has been a difficult start to the year for this leading furniture and homewares retailer’s shares. Since the beginning of 2022, the Adairs share price has lost almost a third of its value due to COVID headwinds impacting its performance.

While this is disappointing for shareholders, it could be a buying opportunity for non-shareholders. That’s the view of the team at Morgans, which believes the market is undervaluing its shares and overlooking its positive outlook.

It recently commented: “In FY23, we expect Focus [on Furniture] to have bedded down and to have started a strategy of improving store economics while expanding its footprint. We expect the NDC [national distribution centre] to be up and running and delivering efficiencies. We expect Mocka to be making its first steps towards an omni-channel strategy. These factors underpin an expectation of positive earnings growth in FY23 and FY24, which we do not think are reflected in the multiple. ADD.”

Morgans has an add rating and $3.50 price target on its shares.

In repect to dividends, its is forecasting fully franked dividends of 19 cents per share in FY 2022 and 26 cents per share in FY 2023. Based on the current Adairs share price of $2.84, this will mean yields of 6.7% and 9.1%, respectively, over the next couple of years.

Centuria Industrial Reit (ASX: CIP)

Another ASX dividend share to look at is Centuria Industrial. It is the largest domestic pure play industrial REIT, with a high-quality portfolio of properties across key metropolitan locations throughout Australia. These assets include in-demand areas such as distribution centres, cold storage, and transport logistics.

Although the company’s shares have rallied 25% higher over the last 12 months, the team at Macquarie doesn’t believe it is too late to invest. In fact, its analysts believe Centuria Industrial’s shares are attractively priced and that its portfolio is well-placed for growth thanks to tailwinds being experienced in the industrial sector.

The broker currently has an outperform rating and $4.27 price target on its shares.

And as for dividends, Macquarie is forecasting a 17.3 cents per share distribution in FY 2022 and a 17.8 cents per share distribution in FY 2023. Based on the current Centuria Industrial share price of $3.92, this will mean yields of 4.4% and 4.5%, respectively.