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Highlights:
Universal Store Holdings Ltd (ASX:UNI) delivered strong earnings growth and declared an increased dividend.
Accent Group Ltd (ASX:AX1) reported like-for-like sales growth and maintains a high dividend yield.
Both retailers experienced recent share price declines, increasing dividend yield attractiveness.
The retail segment of the ASX dividend share market offers consistent income streams, especially during periods of share price volatility. Companies with reliable cash flow and strong brand portfolios often maintain or grow dividend payouts, even as broader economic concerns affect valuations. Recent tensions involving global trade and policy uncertainty have introduced fluctuations in equity prices, which in turn has elevated dividend yields among select businesses.
Universal Store Holdings Ltd (ASX:UNI)
Universal Store Holdings Ltd operates in the fashion retail sector, primarily catering to younger demographics through a combination of exclusive and licensed brands. Its portfolio includes stores branded as Universal Store, Perfect Stranger, and CTC, which distribute labels such as THRILLS and Worship. Its retail footprint includes a wide network of physical locations across the country.
The company recently published its half-year financials for FY25, demonstrating strong revenue and earnings growth. Sales expanded substantially, accompanied by an increase in net profit after tax. The board declared a higher dividend compared to the previous corresponding period.
One notable driver of sales performance has been the growth of the Perfect Stranger brand, which has expanded its revenue base significantly. The company also plans to open several additional stores during the second half of FY25, further scaling its retail operations.
Following recent market movements, the company’s dividend payments translate into a grossed-up dividend yield that stands notably higher compared to historical averages. The ASX 200 retail space includes few small-cap names with such dividend yield levels.
Accent Group Ltd (ASX:AX1)
Accent Group Ltd operates one of the largest footwear retail networks in Australia. It holds distribution rights to a variety of globally recognized brands such as Vans, Timberland, and Saucony. In addition to third-party offerings, the group owns several in-house brands, including Platypus and The Athlete’s Foot.
Over the last several weeks, the company has experienced a decline in share price, which has resulted in an increased grossed-up dividend yield. This change has occurred in the absence of any major deterioration in operational performance. Its earnings multiple remains relatively low compared to other ASX 200 peers in the retail segment.
Sales in the first part of the second half of FY25 showed year-on-year growth, and the group plans to continue expanding its store count. Upcoming brand launches in the next financial year are expected to enhance the company’s product range and distribution footprint.
Accent Group’s balance of brand strength, geographic reach, and steady financial performance supports its current dividend payments. The company’s dividend yield ranks among the higher ones in the retail component of the ASX 200, especially when franking credits are included.
Both ASX: UNI and ASX: AX1 are dividend-paying businesses that have experienced recent share price declines, resulting in dividend yields above historical norms. These conditions may appeal to income-focused market participants observing the current equity environment.
