The ASX dividend share Shaver Shop Group Ltd (ASX: SSG) has been one of the most compelling options for passive income over the last several years. I have a lot of belief that its dividend record will continue for the coming years.
The company is a retailer in the male and female personal grooming space. It wants to be the market leader in all things related to hair removal. The company sells items such as electric shavers, clippers, trimmers and wet shave items.
At the last count, there were 124 Shaver Shop stores across Australia and New Zealand. The company also has websites in Australia and New Zealand, as well as a presence on eBay, Amazon and TradeMe online marketplaces.
It aims to provide a wide range of quality brands at competitive prices. The company's presence in the market allows it to negotiate exclusive products with suppliers. It also sells products from different categories such as oral care, hair care, massage, air treatment and beauty categories.
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Strong dividend potential
The ASX dividend share has increased its annual dividend per share in almost every year since 2017. It was only 2024 that the company maintained its annual dividend per share. However, FY25 saw another increase by the business.
Shaver Shop increased in its annual dividend by 0.1 cents per share to 10.3 cents. At the current Shaver Shop share price, that represents a grossed-up dividend yield of 10.3%, including franking credits.
The fact that the passive income return could deliver a strong return is really impressive and potentially beat/match the return of the S&P/ASX 200 Index (ASX: XJO).
I think there's plenty of scope for the ASX dividend share to increase its annual payout per share to at least 10.4 cents in FY26 because it generated earnings per share (EPS) of 11.5 cents in FY25 (and cash EPS of 12.1 cents).
I think there's a very good chance that the profit and dividend could increase in the coming years.
Strong outlook for FY26
In the first seven weeks of FY26, the company reported total sales growth of 2.7%, with like-for-like sales growth of 1.5%. Sales growth is a key driver of net profit.
It also reported that the gross profit margin was up compared to the same period in FY25, partly driven by the added margin contribution from Transform-U, its private brand that it's expanding.
Opening stores can also add scale to the business. It's expecting to open two new stores in the first half of FY26, with other stores planned for the second half of FY26. It also plans to refit and relocate some stores.
Overall, I think the ASX dividend share has good profit and dividend prospects.
