Investing in dividend shares is a popular strategy among investors looking for a steady income stream.
Dividend stocks pay a portion of a company's earnings to shareholders, making them attractive options for those seeking both capital appreciation and regular income.
If you're a dividend enthusiast, the following list may interest you.
Super Retail Group Ltd (ASX: SUL)
Super Retail Group operates retail brands in Australia and New Zealand — including Supercheap Auto, Rebel, BCF, and Macpac — specialising in automotive, sports, and outdoor leisure products.
The Super Retail Group share price has experienced a bumpy ride this year. Concerns over softening consumption pushed the share price down from $17.11 in February to a 52-week low of $11.31 in May 2024. Then, it bounced approximately 40% to the current share price of $16.
At the current share price, Super Retail offers a fully-franked dividend yield of 4.8%.
In its May trading update, the company said its like-for-like sales growth was largely flat, with BCF facing a 5% decline and Macpac experiencing 3% growth.
Super Retail's business performance appears to be relatively resilient compared to other consumer companies, as my colleague Sebastian pointed out. However, industry experts are uncertain if consumer spending has fully recovered. Analysts predict that Super Retail's earnings per share (EPS) will decrease by around 12% in FY24 to $1.07.
To be cautious, let's assume its dividend payment for FY24 might decrease by a similar rate. The dividend yield would still be around 4.5%, which isn't too bad considering the company's solid track record of dividend payments.
Super Retail Group announces its FY24 results on 22 August.
HomeCo Daily Needs REIT (ASX: HDN)
When things are uncertain, it's best to stick to necessities. HomeCo Daily Needs REIT is a real estate investment trust focused on properties that cater to everyday consumer needs.
With a portfolio of high-quality retail and services centres across Australia, it aims to provide investors with stable income and growth opportunities.
This business model means the company's cash flows are stable. According to S&P Capital IQ, analysts predict the company's net profits will grow steadily from $177 million in FY24 to $185 million in FY26.
From its all-time high of $1.67 in September 2021, the HomeCo Daily Needs REIT unit price fell 23% to $1.28. At the current unit price, its distribution yield is approximately 5%.
HomeCo Daily Needs REIT is scheduled to report its FY24 results on 14 August.
Betashares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX)
The Betashares Australian Top 20 Equity Yield Maximiser Fund aims to provide a stable income stream while lowering overall volatility. The ETF invests in a portfolio of 20 blue-chip ASX shares in the S&P/ASX 200 Index (ASX: XTL).
Over the past year, the YMAX ETF unit price moved in a small range between $7 to $8, in line with its aim to reduce volatility in the unit price.
At the current price, the ETF provides an attractive yield of 7.7%.
Based on Betashares' data to 28 June 2024, the ETF's total returns were 13% in the past year and 6.37% for the last five years, including its distributions and net of fees. This could be a good option for investors looking for stability in distributions.
