Kogan.com Ltd (ASX: KGN) isn't what you'd normally think of when it comes to ASX dividend stocks, but I'm going to talk through why it could make a lot of sense.
Kogan is best known for its retail platform that sells numerous items such as phones, TVs, computers, tablets, other consumer electronics, appliances, furniture, clothes and lots more.
It also has other offerings including mobile, home internet, insurance, travel, credit cards and energy.
The Kogan share price has had a rough time of it over the last few years since the COVID-19 boom of online shopping in 2020; it's down more than 80% since 2020.
You'd think the ASX dividend stock was experiencing deteriorating sales and very limited prospects for profitable growth with how far it has fallen. However, that's not reality and the business could be a dark horse contender to be a surprisingly good ASX dividend stock.
Pleasing passive income potential
In the 2025 financial year, the business decided to pay an annual dividend per share of 14 cents.
If the business was to repeat that in FY26 with (100% franked) dividends of 14 cents per share, that'd equate to a grossed-up dividend yield of 6.5%, including franking credits.
The estimate on CMC Markets suggests in FY27 it could pay an annual dividend per share of 16.8 cents. That could equate to a grossed-up dividend yield of 7.8%, including franking credits.
There are not many growing businesses that may offer a dividend yield as strong as that in the next couple of years.
Let's take a look at whether the business is actually growing.
The ASX dividend stock is making progress
While the FY25 result included a $46.3 million impairment of goodwill related to New Zealand-based Mighty Ape, other numbers were positive.
It reported gross sales growth of 15.1% to $930.9 million and 6.2% growth of revenue to $488.1 million. Gross profit grew 12.7% year-over-year to $189.9 million.
Kogan also reported 35.1% year-over-year growth of active customers to more than 3.5 million. The group's platform-based sales grew by 24.4% to $111.9 million, which comes with high profit margins and leveraging its capital-light model.
The month of July 2025 saw group gross sales growth of 26.5% year-over-year to $80.7 million, with Kogan.com gross sales growth of 32.5% to $70.4 million. Group revenue increased 2.6% year-over-year to $41.3 million.
The forecast on CMC Markets suggests the ASX dividend stock could achieve earnings per share (EPS) of 22.3 cents in FY27. It's trading at 14x FY27's estimated earnings, which I think looks cheap if it grows its revenue and EPS.
