This seems like an excellent time to pick up discounted ASX dividend shares while high interest rates have pushed down on the valuations of certain sectors. I'm going to talk about two stocks with share prices under $2.

While the share price of a business doesn't necessarily mean it's better value or that it can offer a better dividend, it can be easier to buy the desired amount of shares in dollar terms. For example, if you had $950 to invest and a business had a $100 share price, you'd only be able to buy $900 of shares because the next share would be too expensive, but you're left with $50.  

I'm going to talk about two ASX dividend shares that have share prices under $2 that could be rewarding.

Rural Funds Group (ASX: RFF)

Let's look at the passive income payments from this business first. Rural Funds has provided an impressively consistent distribution since it started paying money to investors a decade ago. It grew its distribution every year between 2014 and 2022, then maintained the cash payment at 11.73 cents per unit in FY23 and FY24.

At the current Rural Funds share price, it has a distribution yield of 6.4%.

Amid the uncertainty of high inflation and elevated interest rates, Rural Funds could provide an attractive source of stable income.  

The farmland real estate investment trust (REIT) owns properties in various sectors, including cattle, almonds, macadamias, vineyards, and cropping.

The business is benefiting from the annual rental increases built into its contracts and the ongoing investing at its farms that it does to improve the productivity of the land for tenants, such as increased water access.

The ASX dividend share is currently trading at an almost 40% discount to its adjusted net asset value (NAV) of $3.14 at 30 June 2024.

Monash IVF Group Ltd (ASX: MVF)

Monash IVF is one of Australia's largest fertility businesses, providing IVF and other fertility treatments, as well as diagnostic and ancillary services.

The ASX dividend share increased its payout in 2021 and 2022, maintained the dividend in 2023 and then hiked it again in 2024 to 5 cents per share.

At the current Monash IVF share price, that means it currently has a fully franked dividend yield of 4.1% and a grossed-up dividend yield of 5.8%, including franking credits.

What's the likelihood of there being another dividend increase in FY25?

The forecast on Commsec certainly suggests that income-focused investors can be optimistic, with a prediction of an annual dividend per share of 6 cents.

In its annual general meeting (AGM) trading update, the business said its Monash IVF stimulated cycles in the first four months of FY25 to October 2024 had increased 2.6% year over year, its women's imaging scan volumes had increased year over year to 1.7%, and stimulated cycles in the international division had increased by 20% year over year to October 2024.

The business said that despite cost pressures, it has maintained its operating profit (EBITDA) margin thanks to patient price increases.

The ASX dividend share expects the HY25 underlying profit to rise by at least 3.3%, and management expects the full-year underlying profit to rise.

Profit is being helped by a full-year contribution from the Fertility North acquisition, new fertility specialists who have recently joined, recently opened day surgeries, genetics investing, donor activity, capacity expansion of its women's imaging business, international growth, and an ongoing focus on improving margins and efficiencies.