The ASX dividend stock Premier Investments Ltd (ASX: PMV) has fallen heavily over the last few months, as the chart below shows. It's down around 25% from the September 2025 high – this could be a smart time to invest.
Following the divestment of various apparel businesses to Myer Holdings Ltd (ASX: MYR), there are three core areas to the Premier Investments division.
Firstly, I believe the key business is Peter Alexander, a retailer that specialises in selling sleepwear. Smiggle is a retailer that sells school, lifestyle, and stationery items, including bags, lunchboxes, drink bottles, and many more. Finally, it also has a sizeable ownership of coffee machine business Breville Group Ltd (ASX: BRG).
Let's take a look at how appealing the ASX dividend stock could be for investors.
Image source: Getty Images
ASX dividend stock credentials
Over the past decade, the company has delivered a history of dividend increases in most years.
Of course, past dividend payments are not a guarantee of future dividend payments. Premier Investments is a different business following the sale of various clothing brands, including Just Jeans and Jay Jays, to Myer.
However, analysts expect pleasing dividend income in the years ahead.
The forecast on CMC Markets suggests the business could pay an annual dividend per share of 79 cents in FY26. That translates into a potential grossed-up dividend yield of 6.5%, including franking credits.
In FY27, things could get even better for investors in the ASX dividend stock. It's predicted to pay an annual dividend of 88.5 cents per share. That translates into a forward grossed-up dividend yield of 7.3%, including franking credits.
In the eyes of most investors focused on passive income, these potential future yields appear very promising.
Earnings growth potential
The business appears to have a promising future. Earnings growth pays for dividend growth.
Peter Alexander continues to go from strength to strength – in FY25, its sales increased 7.7% year over year. In the second half of FY25, sales rose by 9.2% year over year.
I'm particularly excited by the company's expansion plans for the UK, where it recently launched its first few stores in prime London Shopping centres. The UK population is significantly larger than Australia's, offering ample growth potential.
In Australia and New Zealand, the ASX dividend stock is already working on four new Peter Alexander stores and three relocations/expansions into larger formats in the first half of FY26. At least 15 additional opportunities have been identified for both new and larger-format stores in Australia and New Zealand.
While Smiggle sales have struggled since the COVID-19 pandemic, the decline in sales is improving and will hopefully return to growth sooner rather than later.
I'm excited by what Breville could deliver in the coming years – I'm a shareholder in this business myself. I think home coffee consumption can continue to grow, particularly in markets like China, South Korea and the Middle East, where Breville recently expanded.
According to the forecast on CMC Markets, the Premier Investments share price is valued at 16x FY26's estimated earnings, which seems appealing to me.
