There has been a lot of uncertainty after all of the interest rate rises, pushing down share prices and sending the possible yields higher.
Looking at ASX dividend shares that have fallen over the last year or two, I’d buy these two names.
Centuria Industrial REIT (ASX: CIP)
A real estate investment trust (REIT) is a business that owns commercial properties. Plenty of REITs are focused on certain areas of the market, such as shopping centres or office buildings.
Centuria Industrial REIT is the largest listed Australian pure play on industrial properties – we’re talking about things like large warehouses used for logistics and distribution activities by businesses.
Centuria Industrial REIT share price
While office buildings are suffering from the work-from-home shift, there’s high demand for industrial properties. That’s why the ASX dividend share occupancy rate was 98%, with a 7.7 year weighted average lease expiry (WALE) at the end of FY23. Amazingly, the business reported 30% positive re-leasing spreads in FY23, meaning the net rent has jumped compared to prior passing rents.
The Centuria Industrial REIT share price has fallen over 20% since 29 April 2022. In FY24, the business is expecting to distribute $0.16 per unit, which translates into a distribution yield of 5.2%.
WCM Global Growth Ltd (ASX: WQG)
There are lots of quality businesses listed on the stock exchanges internationally. I love quality businesses, but it’s hard to know about the entire global stock market, so I’d be happy to leave the investing to a high-performing team.
WCM Global Growth is a listed investment company (LIC) – it’s a company that just invests in other assets. The share price has fallen 27% from the end of 2021, yet the dividend payments are now much bigger.
WCM Global Growth share price
The ASX dividend share is targeting businesses that are growing their competitive advantages compared to others in the industry, which hopefully leads to a growing return on equity (ROE).
A differentiator with the investment strategy is that WCM is also looking for the companies that have a culture that enables the building of those competitive advantages.
The investment strategy has delivered outperformance over the long-term – since inception in June 2017, it has achieved net returns of 12.9% per year, outperforming the MSCI All Country World Index (excluding Australia) benchmark by an average of 1.2% per year over that same time period.
The ASX dividend share’s board is aiming to increase its quarterly dividend every quarter. The next four dividends are guided to be a total of $0.069 per share, which is a dividend yield of 7.9% including the franking credits.