Investing in dividend shares offers a strategy for those seeking a regular income stream in addition to potential capital gains. Dividend stocks provide a portion of a company’s earnings to shareholders, making them an attractive option for income-focused investors. Here are three ASX dividend shares that might be of interest:
Super Retail Group Ltd (ASX: SUL) Super Retail Group operates a variety of retail brands in Australia and New Zealand, including Supercheap Auto, Rebel, BCF, and Macpac. The company specializes in automotive, sports, and outdoor leisure products.
The share price for Super Retail Group has fluctuated this year, falling from $17.11 in February to a 52-week low of $11.31 in May 2024. However, it has since recovered approximately 40%, reaching the current price of $16. At this level, Super Retail offers a fully franked dividend yield of 4.8%.
In its May trading update, Super Retail reported that like-for-like sales growth remained relatively stable, with BCF seeing a 5% decline and Macpac experiencing a 3% increase. While the company's performance is relatively resilient compared to other consumer firms, analysts project a 12% decrease in earnings per share (EPS) for FY24 to $1.07. Should the dividend payment decrease in line with EPS, the yield would still be around 4.5%, reflecting a solid dividend track record. The company is set to announce its FY24 results on 22 August.
HomeCo Daily Needs REIT (ASX: HDN) HomeCo Daily Needs REIT focuses on properties catering to everyday consumer needs, providing stability through high-quality retail and services centres across Australia. This business model aims to deliver consistent income and growth potential to investors.
Despite a 23% decline from its all-time high of $1.67 in September 2021, the HomeCo Daily Needs REIT unit price currently stands at $1.28, offering a distribution yield of approximately 5%. Analysts forecast steady growth in net profits from $177 million in FY24 to $185 million in FY26. The REIT is scheduled to report its FY24 results on 14 August.
Betashares (ASX:BBUS) Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX) The Betashares Australian Top 20 Equity Yield Maximiser Fund is designed to provide a stable income while minimizing overall volatility. This ETF invests in a selection of 20 blue-chip ASX shares within the S&P/ASX 200 Index.
The YMAX ETF unit price has remained relatively stable over the past year, fluctuating between $7 and $8, aligning with its goal of reducing price volatility. At the current price, the ETF offers a notable yield of 7.7%. According to data up to 28 June 2024, the ETF has achieved total returns of 13% over the past year and 6.37% over the last five years, factoring in distributions and net of fees. This makes it a potential option for those seeking stable distribution returns.
These dividend shares offer various opportunities for investors seeking both income and stability.