2 ASX dividend shares I believe are a buy

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Amid all the volatility in the share market, I think ASX dividend shares are looking even more attractive.

Issues such as high inflation and rising interest rates are hurting share prices and other assets.

While it’s a tricky situation for some companies and investors, I think these lower prices make some of my preferred income ideas seem even more compelling because it’s boosting the potential dividend yields on offer.

Dividends are not guaranteed returns, but I think the below two ideas can reward investors’ patience with the delivery of solid cash payments.

Brickworks is one of my favorite ASX dividend shares because of the company’s impressive dividend record.

Its normal dividend has been maintained or increased every year since 1976. That means it has been 46 years since the normal dividend last decreased. In the FY22 half-year result, the company grew its interim dividend by 5% to 22 cents per share.

One of the main contributors to Brickworks’ growing dividend is its large holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares. The investment conglomerate owns a diversified portfolio containing a number of different ASX shares, including TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC), Brickworks itself, Pengana Capital Group Ltd (ASX: PCG), and Tuas Ltd (ASX: TUA). Soul Pattinson also has private business investments.

Soul Pattinson has grown its dividend every year since 2000 for shareholders like Brickworks.

The other key area of ​​the ASX dividend share that I like is its 50% share of an industrial property trust in partnership with Goodman Group (ASX: GMG).

This property trust is building large industrial buildings, such as warehouses, on excess land that Brickworks no longer needs. Not only is Brickworks benefiting from the completion (and valuation uplift) of these warehouses, but it’s also benefiting from growing rental income as well.

There is enough land for a building pipeline for several years in the trust.

Brickworks currently has a trailing grossed-up dividend yield of 4.9%.

Centuria Industrial REIT (ASX: CIP)

This real estate investment trust (REIT) is another business with a connection to industrial property. It describes itself as the largest pure-play industrial REIT on the ASX. It looks to provide investors with income and an opportunity for capital growth.

Properties in the portfolio are located in urban, land-constrained markets with access to densely populated catchments. It’s positioning the portfolio towards “capturing rising tenant demand while benefiting from rental growth in highly sought industrial markets”.

The ASX dividend share has also said it’s benefiting from the increasing trend of onshoring and reshoring supply chains to ensure business continuity, combined with the continued adoption of e-commerce.

It has provided guidance of funds from operations (FFO) of at least 18.2 cents per unit – that’s essentially the rental profit – and distribution guidance of 17.3 cents per unit. That means it’s valued at 16 times its estimated rental profit with an FY22 distribution yield of 5.8%.

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