Insights

2 ASX dividend shares that could be buys with yields above 5%

Accent is one of the ASX dividend shares that has a yield of more than 5%.
The post 2 ASX dividend shares that could be buys with yields above 5% appeared first on The Motley Fool Australia. –

There are a number of ASX dividend shares with yields above 5%. Though not all of them are expecting long-term earnings growth.

Demand for income has been elevated as interest rates decline. What interest someone would get from $1 million cash in the bank is a fraction of what used to be on offer.

However, there are still some businesses out there looking to reward shareholders with cash payments which have higher yields.

Accent Group Ltd (ASX: AX1)

Accent is one of the largest shoe retailers across Australia and New Zealand. It has a number of its own brands as well as exclusive distribution rights for other global names. Examples include Skechers, Platypus, VANS, Hype, The Athlete’s Foot, Dr Martens, Stylerunner, Pivot, Glue Store and Trybe.

The ASX dividend share aims to have the best in class margins with gross profit margin growth initiatives as well as a drive for cost efficiency.

Management believe that the company has strong future growth initiatives through Stylerunner, Glue Store, digital sales and new stores, all this is aiming to lead to market share growth.

In FY21, the company opened 90 new stores and all of them were trading ahead of budget. Stylerunner had four stores at the time of the FY21 result (trading “well ahead of expectations”) with 15 new stores to open by early 2022.

Net profit grew by 38.6% to $76.9 million in the last financial year, allowing the board to grow the full year dividend by 21.6% to 11.25 cents per share.

Accent CEO Daniel Agostinelli said about the company’s profit growth and shareholder returns plans:

With our long-term objectives and incentives linked to driving at least 10% compound earnings per share (EPS) growth, Accent continues to be defined by retail innovation, strong cash conversion and the growing returns it delivers on shareholders’ funds.

According to CommSec, Accent could pay a grossed-up dividend yield of 7.3% in FY23.

Adairs Ltd (ASX: ADH)

Adairs is a retailer of homewares, furnishings and, increasingly, furniture.

The business has seen people invest in making their homes more comfortable. It is trying to offer its products to customers with both a store and digital offering. Adairs believes it’s important to be able to offer shoppers the ability to shop how they want to. Multi channel customers spend 40% to 110% more than single channel (store only or online only) customers.

Management believe that a key part of the ASX dividend share’s success is its business model. That includes “strong” brands that it owns and controls, which lowers costs of winning and keeping customers, being able to offer unique products, has higher margins and allows it to expand in other categories. The vertical supply chain is another benefit, providing greater control, the ability to be more agile to conditions and trends, and offer “significantly higher” profitability. Its large and loyal customer base is another area of strength.

Adairs pays out a reasonably high level of its profit as a dividend each year, but keeps some of the profit to re-invest into the business.

At the current Adairs share price, it has a FY23 grossed-up dividend yield of 10% according to Commsec.

The post 2 ASX dividend shares that could be buys with yields above 5% appeared first on The Motley Fool Australia.

Should you invest $1,000 in Accent right now?

Before you consider Accent, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Accent wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Analysts name 2 ASX dividend shares to buy

3 reasons why the Adairs (ASX:ADH) share price could be a buy

2 top ASX shares with generous fully franked dividend yields

Why A2 Milk, Adairs, Bapcor, and Kogan shares are racing higher

Adairs (ASX:ADH) share price pushes higher despite sales slump

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. owns shares of and has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!