ASX shares that offer a combination of growth and dividends can be an appealing option because they allow us to benefit from wealth-building share price growth and a pleasing passive income.
I'd usually write about a few particular businesses for an article like this, which I recently invested in. But other names can also tick the box, which I'll highlight below.
Coincidentally, all three names are from the retail sector, which typically means a relatively low price/earnings (P/E) ratio and therefore a pleasing dividend yield. Let's get into it.
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JB Hi-Fi Ltd (ASX: JBH)
JB Hi-Fi is one of Australia's leading electronic retailers, selling a wide variety of items including phones, TVs, tablets, laptops, smart wearables (such as watches and rings), headphones, video games, and more.
The country's ongoing (and seemingly growing) love for electronic products is helping drive sales growth. In the first quarter of FY26, JB Hi-Fi Australia sales grew 6%, JB Hi-Fi New Zealand sales rose 39.3%, The Good Guys sales rose 2.5% and E&S sales increased 4.1%.
The ASX share has impressed by focusing on efficient costs and achieving a high level of sales for its store size.
Broker UBS predicts the company's net profit could rise to $497 million and that the dividend per share could be solid at $3.40. That means it's trading at 21x FY26's estimated earnings with a potential grossed-up dividend yield of 5%, including franking credits.
Lovisa Holdings Ltd (ASX: LOV)
Lovisa is a retailer that sells affordable jewellery to younger shoppers. It has stores across dozens of countries, giving it a large addressable market to expand into by opening more stores.
The recent trading update from the ASX share included solid numbers, in my opinion. For the first 20 weeks of FY26, total sales were up 26.2% year over year, with global comparable store sales growth of 3.5%. This is a fast rate of rising profit, which is supportive for long-term share price growth and dividends, in my view.
With a steadily climbing store count and the scale advantages that come with it, I believe the company is well-positioned to deliver long-term growth and dividends.
The forecast from analysts at UBS suggests the business is valued at 33x FY26's estimated earnings, and the dividend per share could be hiked to 88 cents per share, translating into a dividend yield of almost 3%.
Premier Investments Ltd (ASX: PMV)
The third ASX share I want to tell you about is the owner of Peter Alexander, Smiggle, and a chunk of Breville Group Ltd (ASX: BRG) shares.
Smiggle has struggled in recent times following the onset of COVID-19, though its sales decline has shown signs of improving. I'm much more excited about the Peter Alexander business, which is showing a good sales performance in Australia, benefiting from new and enlarged stores.
In FY25, Peter Alexander sales grew by 7.7%, with 9.2% growth in the second half of FY25. I'm expecting ongoing growth in FY26, as well as a useful boost from the Peter Alexander expansion in the UK, with an initial focus on London.
According to the forecast from UBS, the Premier Investments share price is valued at 15x FY26's estimated earnings with a possible grossed-up dividend yield of 6.2%, including franking credits.
