The Australian share market is a great place to look for a passive income. This is thanks to the countless dividend shares that trade on the ASX boards.
And while the average yield of 4% is attractive, income-seekers don't have to settle for that. Far from it!
One ASX 300 dividend stock that has been tipped to provide investors with a very big yield is Adairs Ltd (ASX: ADH).
Through its Adairs, Mocka and Focus on Furniture brands, it is Australia's largest omni channel specialty retailer of home furnishings, home furniture, and home decoration products.
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Big yields expected from this ASX 300 dividend stock
Last month, Adairs released its half-year results and reported a 34.1% increase in sales to a record of $324.2 million and a 23.9% lift in statutory net profit after tax to $21.8 million.
And while the Adairs board only maintained its fully franked interim dividend at 8 cents per share, this alone still provides an attractive yield of 3.4% based on the current Adairs share price of $2.37.
But wait, don't forget the company's final dividend! According to a note out of Goldman Sachs, its analysts are expecting another fully franked 8 cents per share dividend in the second half, bringing its full-year dividend to 16 cents per share. This represents a 6.75% dividend yield at current levels.
The good news is that Goldman is then expecting Adairs to increase its dividend to 20 cents per share in FY 2024. If this estimate is accurate, it will mean a very large fully franked 8.4% dividend yield.
And while the broker only has a neutral rating on its shares, its price target of $3.10 implies material upside of almost 31% for this ASX 300 dividend stock over the next 12 months.
