There is a wide range of ASX dividend shares, from blue chips to ASX growth shares that pay solid dividends.
I think there are some names that are small enough to have a large growth runway but are already profitable enough to be paying good dividends.
In my opinion, it's the businesses that are growing at a good pace that are the ones that can deliver the strongest returns over time thanks to compounding.
With that in mind, here are three of my leading ASX dividend shares ideas to achieve growth at the current prices.
Premier Investments Limited (ASX: PMV)
Premier Investments is one of the most compelling retailers on the ASX in my opinion. It has plenty of brands that you'd find in an Australian Westfield shopping centre, such as Just Jeans, Jay Jays and Peter Alexander.
But, there are two parts of Premier Investments that I'm particularly attracted to – Smiggle and Breville Group Ltd (ASX: BRG). Smiggle is a retailer focused on school children that sells a variety of branded products like bags, pencil cases and so on. The products have brand imagery from some of the most popular brands including Marvel and Minecraft.
Management is pleased by Smiggle's performance since the COVID reopening. It's looking to grow in regions like Europe and Asia. The business is looking to "maximise EBIT (earnings before interest and tax) growth".
It owns 25.6% of Breville, a globally-growing kitchen appliance business. While this isn't an article about Breville, I think this business is doing well at increasing its global addressable market and expanding into new countries.
Premier retail sales were up 42.8% year over year in the first 12 weeks of FY23.
The ASX dividend share is projected to pay a grossed-up dividend yield of 5.8% in FY23.
Universal Store Holdings Ltd (ASX: UNI)
Universal Store owns a "portfolio of premium youth fashion brands", which it can sell through its retail stores, online and wholesale. It owns the businesses Universal Store and THRILLS, while also trialling the Perfect Stranger brand as a standalone retail concept.
It continues to open new stores. Universal Stores recently said it's planning to open two new stores before Christmas, as well as another four to five stores in the second half of FY23.
In FY23 for the 21 weeks to 20 November 2022, total group sales (excluding THRILLS) had increased by around 40%, while it also reported a gross profit margin improvement.
The company expects that favourable trading conditions can continue in the post-lockdown environment.
Using the estimates on Commsec, the Universal Store share price is valued at 11 times FY24's estimated earnings with a potential grossed-up dividend yield of 8.4%.
Beacon Lighting Group Ltd (ASX: BLX)
Beacon Lighting might not seem like a business with a lot of growth potential, but I think it is, particularly at this valuation starting point where the Beacon Lighting share price is down 30% year to date.
The shorter term may be a bit volatile with a possible downturn of housing construction in Australia amid rising interest rates.
Beacon Lighting finished FY22 with 117 company stores and two franchised stores. Company research has identified the potential for 184 Beacon Lighting stores in Australia. That suggests a possible rise of over 50%.
It's looking to grow trade sales. FY22 saw Beacon commercial sales increase by 15.8%. Trade club members went up by 7,800 to 52,000 members. It's acquiring new trade products to create a comprehensive range of products for its trade customers.
The ASX dividend share has launched a Beacon Lighting business-to-consumer website in the US to build a market presence in the USA. Beacon Lighting USA saw FY22 sales grow by 51.9%, though from a relatively small base.
FY22 Beacon international sales increased by 27.9% to $15.7 million. It has established a new online ceiling fan sales channel in China with Tmall Global. The company is expecting continued expansion of the Australian designed products into the USA, China, Asian and European markets.
According to Commsec, the Beacon Lighting share price is valued at 13 times FY23's estimated earnings with a potential grossed-up dividend yield of 5.9% for the 2023 financial year.
