Paula SimonInvestors searching for promising portfolio additions should take note of two standout ASX dividend stocks poised for impressive returns. Offering potential yields around 6%, these stocks have been gaining attention this month.
Accent Group Ltd (ASX: AX1) emerges as a strong contender. As a leading retailer in the Australian leisure footwear sector, Accent boasts over 800 stores and commands roughly 30% of the $3 billion Australian footwear market. Its venture into the athleisure segment further strengthens its position. Analysts emphasize the strategic impact of Frasers Group’s 15% investment and its role on the board, boosting plans to expand the Sports Direct brand in Australia. Forecasts point towards fully franked dividends of 13.7 cents in FY 2025 and 15.6 cents in FY 2026. With a share price of $2.37, yields are projected at 5.8% and 6.6%, respectively. Bell Potter endorses Accent with a buy rating and a target of $2.75.
Inghams Group Ltd (ASX: ING) offers another compelling opportunity. As the foremost poultry producer in Australia and New Zealand, Inghams navigated a challenging FY 2024. Despite this, analysts perceive its shares as undervalued due to market reactions. The situation could lead to attractive yields, with projected fully franked dividends of 19 cents per share for FY 2025 and FY 2026. With shares priced at $3.15, this suggests a 6% yield for both years. Morgans identifies significant potential for price increases and rates Inghams with an add recommendation and a $3.66 target.
These ASX stocks, with their solid dividend yields and growth prospects, present a noteworthy option for income-focused investors.
These ASX Dividend Stocks Promise High Yields and Growth
Investors on the hunt for lucrative dividend stocks on the ASX should keep their eyes on two promising contenders poised to deliver impressive returns: Accent Group Ltd (ASX: AX1) and Inghams Group Ltd (ASX: ING). Both stocks present strong opportunities for income-focused investors, with potential yields hovering around 6%.
Accent Group Ltd (ASX: AX1): A Retail Powerhouse
Accent Group Ltd is carving out a formidable space in the Australian leisure footwear industry. With over 800 outlets, Accent commands a substantial 30% share of the $3 billion Australian footwear sector. The company is making strategic moves into the athleisure segment, enhancing its growth trajectory. A key development is the involvement of Frasers Group, which has acquired a 15% stake and secured a board position. This partnership aims to amplify the presence of the Sports Direct brand in the Australian market.
Financial forecasts are optimistic, with fully franked dividends of 13.7 cents expected in FY 2025 and 15.6 cents in FY 2026. Based on the current share price of $2.37, yield projections stand at 5.8% and 6.6%, respectively. Investment firm Bell Potter has given Accent a “buy” rating and set a price target of $2.75, signaling confidence in its market performance and strategic initiatives.
Inghams Group Ltd (ASX: ING): A Leading Poultry Producer
Inghams Group Ltd, Australia’s and New Zealand’s leading poultry producer, faced a challenging FY 2024. However, analysts view the market’s reaction as an opportunity, suggesting that the stock is undervalued. Inghams is expected to distribute fully franked dividends of 19 cents per share in both FY 2025 and FY 2026. With the stock currently priced at $3.15, this indicates a commendable yield of 6% annually for those years.
Investment firm Morgans has recognized the potential for pricing improvements and has rated Inghams with an “add” recommendation, projecting a price target of $3.66. This suggests a belief in the company’s capacity for growth and market resilience despite recent challenges.
Conclusion
Accent Group Ltd and Inghams Group Ltd both offer promising prospects for investors seeking solid dividend yields combined with growth potential. With strategic investments and market positioning, these stocks are worthy candidates for inclusion in an income-focused investment portfolio.
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