The retail conglomerate behind Peter Alexander and Smiggle continues to reward income investors, even as trading conditions stay tough.
Premier Investments Ltd (ASX: PMV) may not grab headlines as often as some of its ASX peers.
But for income investors it has quietly delivered a reliable stream of fully-franked dividends for years.
With the company's most recent half-year result now in the books, here is exactly what shareholders are receiving in 2026.
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What Premier paid in the first half
Premier Investments declared a fully-franked interim dividend of 45 cents per share alongside its half-year results in March 2026.
Across FY 2025, the company paid a total fully-franked dividend of 90 cents per share, split between interim and final payments.
The next ex-dividend date falls on 3 August 2026, when Premier will declare its final dividend for FY 2026.
What analysts are forecasting
Macquarie carries an outperform rating on Premier Investments and forecasts fully-franked dividends of 95.2 cents per share for FY 2026, rising to 97.4 cents per share in FY 2027.
Based on the share price at the time of writing, those forecasts imply dividend yields of around 7.9% and 8.1%, respectively.
Macquarie holds a price target of $16.90 on the stock, suggesting meaningful capital upside alongside the income.
A word of caution
Investors should note that Premier's current payout ratio sits above 100% of reported earnings, meaning the company distributes more than it earns on a statutory basis.
That warrants attention from income-focused investors.
Macquarie's optimism rests largely on the strength of the Peter Alexander brand, which delivered a 4.9% sales increase to $312.3 million in the first half of FY 2026.
Smiggle remains the drag, with sales falling 10.7% to $140.5 million in the same period.
Management expects full-year FY 2026 underlying EBIT of around $183 million, down from $195.4 million in FY 2025.
Foolish Takeaway
Premier Investments offers one of the highest forecast dividend yields in the ASX retail sector right now.
Investors should keep an eye out on the payout ratio; any consistent payouts beyond 100% could lead to a dividend cut.
But if Premier Investments can continue to grow the Peter Alexander brand, investors may benefit from consistently high dividend payouts.
