The Accent Group Ltd (ASX: AX1) share price has slipped in recent months and now trades around 91.5 cents. For income-focused investors, this drop has made the stock far more attractive, especially given the company's ability to maintain a strong dividend profile even in a challenging retail environment.
Accent owns some of the best-known footwear chains in Australia and New Zealand, including Platypus, Hype DC, The Athlete's Foot, and Glue Store. Although it may not receive the same attention as the larger retailers on the ASX, its dividend track record is one of the more appealing in the mid-cap space.
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Why I think Accent is worth a closer look
Accent has proven that it can keep growing even when consumer spending is patchy. In its latest trading update, the company highlighted stronger digital sales, resilient gross margins, and encouraging early signs heading into the key holiday period. These are the kinds of signals I like to see from a retailer when conditions are challenging.
The AGM presentation also made it clear that Accent's growth strategy remains intact. More stores, more owned brands, and more investment in online infrastructure all help support earnings stability. For income investors, that means continued confidence that dividends can keep flowing.
Accent paid 10 cents per share in fully franked dividends over the last 12 months. At the current share price of 91.5 cents, the trailing dividend yield sits at roughly 10.9%. That is incredibly high for an ASX 200 stock still growing its store network and customer base.
How a $5,000 investment stacks up
At a share price of 91.5 cents, a $5,000 investment in Accent Group would buy around 5,464 shares.
With last year's fully franked dividend of 10 cents per share, that holding would generate about $546 a year in dividends. Once franking credits are included, the income benefit is even higher.
Of course, dividends can fluctuate, but Accent has a history of paying out a meaningful portion of its profits, and the company continues to invest in the areas of the business that matter most for long-term growth.
Foolish Takeaway
Accent Group is not the most exciting company on the ASX, but it is exactly the type of business I like to own for income. Strong brands, consistent profitability, and a high dividend yield at this share price make it a compelling option for long-term dividend investors.
If Accent continues to do what it has been doing and dividends continue to grow, a $5,000 investment today could yield around $546 in dividend income per year, or roughly $780 when factoring in franking credits. For anyone chasing yield, Accent Group is starting to look very hard to ignore.
