Got money to invest for income? Here are 2 ASX dividend shares

These 2 ASX dividend shares could be worth owning for income. Those names are Ltd (ASX:KGN) and Accent Group Ltd (ASX:AX1).

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Do you have money to invest for income? There are a few ASX dividend shares that could be good candidates.

Bond yields might be going up a little bit, but the official Reserve Bank of Australia (RBA) interest rate is still almost 0% right now.

But some ASX income shares still have decent yields on offer for investors: Ltd (ASX: KGN) isn’t typically considered an ASX dividend share. But, with the share price down 40% since 25 January 2021, the ASX online retailer’s dividend yield has been pushed up.

According to Commsec, has a forecast grossed-up dividend yield of 4.1% for FY21 and 5.4% for FY23. The dividend has been increasing over recent years already. continues to grow at a pleasing rate thanks to its various divisions, including Kogan Marketplace which is growing by triple digit figures at the moment. The ASX dividend share is aiming to continue its growth by focusing on an enhanced consumer offering (broader selection and improved pricing), more partners and products (more brands, sellers and new categories) and a stronger platform (higher margins and a bigger audience).

Continuing growth of profit is likely to help the dividend growth further.

In January 2021, gross sales increased by 45% year on year, including 111.6% growth of Kogan Marketplace and 54.6% in exclusive brands. Gross profit went up 102% and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) grew 90%.

According to Commsec, the share price is valued at 24x FY21’s estimated earnings.  

Accent Group Ltd (ASX: AX1)

Accent is a shoe retailer responsible for selling various shoe brands locally like Skechers, Dr Martens, Vans, Cat and Timberland.

The ASX dividend share is another business that has been steadily growing its payment to shareholders. Its profit has been rising over the years as it extended its store network, improved margins and added more brands.

Accent’s half-year result saw another large improvement of the dividend, a 52.4% increase of the interim dividend in-fact.

Online growth of 110%, representing 22% of total sales, was a highlight for the ASX dividend share in the half-year. It’s aiming for online sales to be 30% of sales over time. In FY21, the company is aiming to open 90 stores across all stores, with continuing strong growth expected into FY22.

In the first eight weeks of the second half of FY21, sales were up 10.7% and online sales were up 65.4%. The Athlete’s Foot like for like sales in January grew by 20.4%.

Accent currently has a trailing grossed-up dividend yield of 7.5%.

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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 owns shares of and has recommended ltd. 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.

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