There are plenty of dividend-paying stocks on the Aussie stock market, though only some are high-yield ASX dividend shares. Some I'd buy for my portfolio – in fact, I recently invested in two such companies.
I might not hold them for decades, but I think they have good turnaround potential over the next two or three years, and they could continue growing after that.
Let's take a look at my two recent investments.
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Centuria Capital Group (ASX: CNI)
It's a property fund manager which had $21 billion of assets under management (AUM) at the end of September 2023. Centuria offers listed and unlisted real estate funds, as well as tax-effective investment bonds.
There is plenty of uncertainty surrounding the real estate sector, though the end of interest rate rises in Australia could start to rebuild confidence. Any rate cuts could be particularly beneficial for supporting property values.
Not only does the high-yield ASX dividend share earn millions in management fees, but it also owns a sizeable amount of Centuria Industrial REIT (ASX: CIP) units and Centuria Office REIT (ASX: COF) units. This helps provide distributions to the Centuria parent and strengthens the balance sheet.
In FY25, Centuria is forecast to generate 11.2 cents of earnings per security (EPS) and pay a distribution per security of 10 cents – that would be a distribution yield of 6.25%.
If the company keeps winning institutional mandates (and more AUM), it could beat those expectations.
Accent Group Ltd (ASX: AX1)
Accent is an ASX retail share that owns quite a few brands in Australia, such as The Athlete's Foot, Nude Lucy, Stylerunner and Glue Store.
It also acts as the local distributor for other brands, including Kappa, Dr Martens, Vans, Hoka, Merrell, Ugg and Skechers.
This high-yield ASX dividend share has a strategy of steadily opening up new stores, which is helping expand its reach and grow its overall sales. It also helps that the business is growing digital sales, giving it an alternative way to connect with customers.
Costs may be weighing on its profitability at the moment, but I don't think they will keep inflating at this strong rate forever. And I don't think the retail environment will be so tricky forever.
I like that the business is growing its owned brands and steadily adding more brands to its portfolio.
It has paid a solid dividend for most years in its history. According to Commsec, it's forecast to pay an annual dividend per share of 13.2 cents in FY25, which would be a grossed-up dividend yield of 10.3%.
