If I were looking for high-yield ASX dividend stocks to unlock significant passive income, Shaver Shop Group Ltd (ASX: SSG) is one of the businesses I'd look at first.
The business may not be one of the most well-known dividend-paying stocks on the ASX, but it's one of the leaders in its own corner of the retail industry.
It has a goal to be the market leader in all things related to hair removal. Its offer is focused on providing a wide range of quality brands at competitive prices, with staff that have "excellent" product knowledge. Some of the products it sells includes electric shavers, clippers, trimmers and wet shave items. It sells a number of unique products from some brands, giving the business a unique selling point.
This ASX dividend stock currently has 124 Shaver Shop stores across Australia and New Zealand, as well as having a presence on multiple online retail portals.
We're going to look at how much passive income this business could pay if I made a $20,000 investment.
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Strong passive income
Impressively, the high-yield ASX dividend stock has grown its annual dividend per share every year (aside from FY24) since 2017 when it first started paying a dividend. In FY24, the company maintained the dividend.
In FY25, the business decided to increase its annual dividend per share by 1% to 10.3 cents. An increase is welcome during a difficult consumer environment.
At the current Shaver Shop share price, that FY25 payout translates into a dividend yield of 7.1% excluding dividends and 10.2% including franking credits.
If I were to invest $20,000 and receive a 10.2% grossed-up dividend yield, I'd receive $2,040 of passive income.
Of course, that projected payout assumes the FY26 dividend is the same as FY25. I believe the payment could increase again in FY26.
Compelling outlook for the high-yield ASX dividend stock
Firstly, the company announced it was planning to increase its dividend payout ratio to between 65% to 90% of underlying net profit, up from 60% to 80%.
Second, the company said its private brand Transform-U, which launched in FY25, significantly exceeded expectations – it accounted for 3.4% of total FY25 sales and 5.4% of FY25 second half sales. This initiative can help the business increase both its sales and gross profit margin.
It's also looking to secure additional distribution brands for the ANZ market, sell in more categories, improve its social media presence, open new stores and relocate, refit or enlarge existing store locations.
Finally, the high-yield ASX dividend stock revealed that total sales increased 2.7% year over year for the period 1 July 2025 to 21 August 2025. This, combined with a reported higher gross profit margin, suggests higher earnings and potentially a larger dividend.
