( ) might be a rewarding company to own for . Now, retail companies may not be an investor's first choice for income, but they can trade on a low and sometimes have a high , resulting in a high . Universal Store owns a number of premium youth fashion brands, including Universal Store, THRILLS, Worship and Perfect Stranger.
Here's why I think it should be on your dividend stock watchlist. Universal Store started paying a dividend in 2021 and has grown its annual payout each year since. In 2021, it paid an annual dividend per share of 15.
5 cents; in 2022, 21.5 cents per share; and in 2023, 22 cents per share. In the , Universal Store's board decided to increase its dividend per share by 18% to 16.
5 cents. This means the last two declared dividends amounted to a fully dividend yield of 5.1% and a grossed-up dividend yield of 7.
3%. That's a lot stronger than the rates offered by term deposits. Analysts expect Universal Store dividends to increase even further.
Commsec forecasts that the ASX dividend share could pay an annual dividend per share of 28 cents in FY25 and 32 cents in FY26. This translates into grossed-up dividend yields of 8.3% in FY25 and 9.
5% in FY26. Dividend growth is not guaranteed, but the company has shown a willingness to keep hiking the payout. If profit can keep rising, then future dividends could be positive for shareholders.
One of the easiest ways for a retailer to grow profit is to increase the size of its store network. In the FY24 first-half period, it.