Some ASX dividend shares have very big dividend yields thanks to their big payout ratios and the growth generated in recent times.
But, not only do the businesses below have large yields, but the businesses are also increasing the dividends per share too.
JB Hi-Fi Limited (ASX: JBH)
JB Hi-Fi is one of the largest Australian retailers of appliances and electronic devices. It has experienced a high level of demand over the last 12 months and this was shown in the latest FY21 half-year result.
It saw total sales go up 23.7% to $4.9 billion, earnings before interest and tax (EBIT) grew 76% to $462.8 million and net profit after tax (NPAT) grew 86.2% to $317.7 million. One area of particularly strong growth was an online sales increase of 161.7% to $678.8 million.
Both The Good Guys and JB Hi-Fi Australia saw large growth of its EBIT margin thanks to cost control. JB Hi-Fi Australia’s EBIT margin increased 214 basis points to 9.8% and The Good Guys’ EBIT margin went up 417 basis points to 8.7%.
The ASX dividend share’s board decided to increase the interim dividend by 81.8% to $1.80 per share – this represented 65% of net profit. It currently has a trailing grossed-up dividend yield of 7.4%.
Nick Scali Limited (ASX: NCK)
Nick Scali is another ASX retail share that is experiencing high levels of growth. HY21 sales went up 24.4% to $171.1 million. Sales order growth in January 2021 was up 47%, with the sales order bank at the end of the month being the highest of all time.
HY21 underlying EBIT grew 100.3% and the EBIT margin rose 1,270 basis points to 33.6%. Underlying earnings per share (EPS) also doubled, which allowed the board to grow the interim dividend by 60% to $0.40 per share.
The ASX dividend share continues to add new stores to its network. It’s expecting to open two further stores in the second half of FY21.
Nick Scali currently has a trailing grossed-up dividend yield of 8.7%.
Charter Hall Long WALE REIT (ASX: CLW)
This is a real estate investment trust (REIT) operated by Charter Hall Group (ASX: CHC) with the aim of generating rental income from tenants with a high quality property portfolio and long weighted average lease expiry (WALE). The properties are spread across different sectors including telecommunications exchanges, agri-logistics, industrials and logistics, office and long WALE retail.
The WALE was 14.1 years at 31 December 2020 at the ASX dividend share and the weighted average rental review (WARR) increase was 2.2%.
Charter Hall Long WALE REIT reaffirmed its FY21 operating EPS guidance of no less than 29.1 cents per security, representing growth of at least 2.8%. The target distribution payout ratio remains at 100% of operating earnings, representing a FY21 yield of at least 6%.
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Returns As of 15th February 2021
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.