3 ASX dividend shares to buy on sale right now

The ASX share market has been shaken around in 2022 amid high inflation and rising interest rates. It’s left some ASX dividend shares looking like bargains.

When share prices fall, it means that dividend yields are increased for potential investors. For example, if a business has a 6% dividend yield and its share price drops 10%, the yield turns into 6.6% if the same dividend is paid.

While it’s hard to say what share prices are going to do next, it’s comforting knowing that ASX dividend shares can keep sending the dividend cash to shareholders.

So which names are worth looking at? Here are three that could be in the bargain basket.

Jumbo Interactive Ltd (ASX: JIN)

Jumbo describes itself as Australia’s leading dedicated digital lottery company. It offers its proprietary lottery software platform and lottery management experience to government and charity lottery sectors in Australia and globally. It also retails lottery tickets in Australia and the South Pacific.

The Jumbo share price has plunged 26% in 2022 to date. FY22 was solid with underlying earnings per share (EPS) increasing by 13% to 51.5 cents per share.

The ASX dividend share is expecting a lower profit margin in FY23, but Commsec numbers suggest it could grow its profit and the dividend in FY23. The Jumbo share price is valued at 27 times FY23’s estimated earnings with a grossed-up dividend yield of 4.5%.

PeopleIn Ltd (ASX: PPE)

PeopleIn says that it “provides clients with complete talent solutions, from workforce resourcing and project management, through to staffing and upskilling solutions”.

The ASX dividend share recently reaffirmed its FY23 earnings guidance, with normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of between $62 million to $66 million.

It gave a market update that said “operating conditions continue to be highly positive, given the strength of the employment market and extensive demand” from clients. The company said its healthcare and community vertical is “well-placed to address the critical shortages within its sector, as delays in visa processing and travel costs improve”.

Despite the positive outlook, the PeopleIn share price has fallen just over 30% in 2022.

According to Commsec, the PeopleIn business is priced at nine times FY23’s estimated earnings with a potential grossed-up dividend yield of 7%.

TPG Telecom Ltd (ASX: TPG)

TPG is one of the largest telecommunication businesses in Australia. It has the brands of TPG, iiNet, and Vodafone Australia.

The business is rolling out its 5G network and has also signed up to a major regional network sharing agreement with Telstra Group Ltd (ASX: TLS) which will improve its offering to customers.

Its latest result, the FY22 half-year report, shows a 135,000 net increase in mobile subscribers. The ASX dividend share is also working on growing its number of fixed wireless subscribers. This is home internet powered by the mobile network, which can generate much stronger profit margins for the business.

The merger between Vodafone Australia and TPG is on track to deliver the synergies target of between $125 million to $150 million in FY22.

The FY22 interim dividend grew 12.5% to nine cents per share. After a 25% fall in the TPG share price since mid-August, it’s expected to pay a grossed-up dividend yield of 5.6% in FY23.

The post 3 ASX dividend shares to buy on sale right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive and Peoplein. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Jumbo Interactive, Peoplein, and Tpg Telecom. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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