Chasing the highest yield can be tempting, but it's not always the smartest move. A more reliable strategy is to focus on companies that consistently grow their payouts over time. That's often a sign of a healthy business with rising earnings and strong cash flow.

Here are two ASX dividend shares that tick those boxes.

APA Group: a cornerstone income stock

APA Group (ASX: APA) has built a reputation as one of the most dependable income plays on the market.

Its vast network of gas pipelines and energy infrastructure operates under long-term contracts, generating predictable, recurring revenue. That stability has translated into an impressive track record. The $13 billion ASX dividend share has increased its annual distribution every year for the past two decades.

The momentum is continuing. APA recently reported a strong first-half FY26 result, with underlying EBITDA rising 7.6% to $1,092 million. It also upgraded its organic growth pipeline from $2.1 billion to around $3 billion for the FY26 to FY28 period.

Importantly for income investors, APA is targeting a FY26 distribution of 58 cents per security. That equates to a yield of around 5.8% at current prices.

While infrastructure stocks can be sensitive to interest rate movements, APA's core business remains resilient. Its assets are critical to energy supply, and much of its revenue is linked to inflation, helping support steady cash flow and growing distributions.

Universal Store Holdings: fast growth, rising dividends

For investors willing to look beyond traditional income sectors, Universal Store Holdings Ltd (ASX: UNI) offers a different kind of opportunity.

The company operates youth-focused fashion brands, including Universal Store and Perfect Stranger, and its growth has been driven by strong sales momentum and an expanding store footprint.

That growth is translating into rising shareholder returns. The ASX dividend share has increased its dividend every year since it began paying one in FY21, and the business is still expanding quickly. In its FY26 half-year result, group sales climbed 14.2% to $209.6 million. The company plans to open up to 17 new stores in FY26, while continuing to explore additional expansion opportunities.

Broker sentiment is also supportive. Morgans has a buy rating on the ASX dividend fashion share with a $10.60 price target, which points to a healthy 43% upside from the current price level.

On the income front, Morgans forecasts fully-franked dividends of 41 cents per share in FY26 and 46 cents in FY27. Based on the current share price of $7.43, that implies yields of around 5.6% and 6.25%, respectively.

Foolish Takeaway

APA and Universal Store offer two different paths to passive income. APA delivers stability and long-term reliability, while the fashion stock brings growth and rising payouts.

Together, they highlight an important point: the best ASX dividend shares aren't just about yield, they're about sustainable, growing income over time.

The post Want passive income? These ASX dividend shares offer 5%+ yields appeared first on The Motley Fool Australia.

It's interesting when one expert rates a business as a buy, but when multiple investment professionals say a company is worth owning, it's a very interesting situation to look at.

Let's look at two businesses that have extremely positive ratings.

Aussie Broadband Ltd (ASX: ABB)

Aussie Broadband describes itself as the fifth largest provider of broadband services in Australia, with long-term growth in the residential segment. The business provides other offerings like data, voice and managed solutions to business, enterprise and government customers. It also provides wholesale services to other telcos and managed service providers.

According to CMC Invest, there have been eight recent analyst ratings on the business, with seven of those being buys. The average price target of all of those ratings is $6.16, which suggests a possible rise of 14% over the next year from where it is at the time of writing.

The ASX share is delivering good growth, which is helping it deliver pleasing financial performance.

In the FY26 half-year result, it reported 13.7% year-over-year growth of broadband connections to 827,683. This helped it deliver revenue growth of 8.4% to $637.8 million, underlying operating profit (EBITDA) grew 13.5% to $74.7 million and underlying net profit after tax (NPAT) rose 40.9% to $22.3 million.

The business is expecting to grow its FY26 EBITDA to grow by between 17% to 21%, to between $162 million to $167 million, which is an excellent growth rate, in my view.

According to the projection on CMC Invest, the business is valued at 18x FY27's estimated earnings.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store owns a portfolio of premium youth fashion brands. Its main business is Universal Store (trading under the Universal Store and Perfect Stranger retail banners) and CTC (trading under the THRILLS and Worship brands). It has close to 120 stores across Australia.

According to CMC Invest, there have been seven recent analyst ratings on the ASX share, with all of those being buys.

The average price target on Universal Store is $10.45, suggesting a possible rise of more than 40% over the next 12 months.

This business is growing at a rapid pace – in the FY26 half-year result, group sales increased by 14.2% to $209.6 million. Universal Store sales rose 11.9% to $174.8 million and Perfect Stranger sales soared 41.5% to $17.8 million.

Universal Store is expecting to open up to 17 stores in FY26 and it's pursuing "additional new store opportunities" while "being prudent to ensure long-term profitability."

According to the projection on CMC Invest, the ASX share is valued at just 12x FY27's estimated earnings.  

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

Three that could be top buys according to analysts are listed below. Here's what they are recommending to clients and the sort of yields you could expect:

IPH Ltd (ASX: IPH)

The first ASX dividend share that could be a buy according to analysts is IPH.

It is an international intellectual property services group with a diverse client base of Fortune Global 500 companies and other multinationals, public sector research organisations, SMEs, and professional services firms.

Morgans is bullish on the company and has a buy rating and $5.39 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 38 cents per share in FY 2026 and then 39 cents per share in FY 2027. Based on its current share price of $3.59, this would mean generous dividend yields of 10.6% and 10.9%, respectively.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be a buy is Rural Funds Group.

It is an agricultural real estate investment trust (REIT) that owns farmland and agricultural infrastructure. Its assets include almond orchards, cattle properties, vineyards, and macadamia farms across Australia.

Bell Potter is a fan of the company and has put a buy rating and $2.50 price target on its shares.

Rural Funds has a long history of paying steady distributions to investors and Bell Potter expects this trend to continue. It is forecasting dividends per share of 11.7 cents in FY 2026 and FY 2027. Based on its current share price of $2.04, this would mean dividend yields of 5.7%.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend share to consider buying for its generous yield is Universal Store.

Universal Store is a youth fashion retailer operating across multiple brands. Despite the challenging retail backdrop in recent years, it has continued to generate strong sales and earnings.

The team at Morgans is also positive on this one and sees it as a top pick in the small-cap space.

As a result, it has put a buy rating and $10.60 price target on the company's shares.

With respect to payouts, Morgans is forecasting fully franked dividends of 41 cents per share in FY 2026 and then 46 cents per share in FY 2027. Based on its current share price of $7.34, this would mean dividend yields of 5.6% and 6.25%, respectively.

The post 3 ASX dividend shares to buy with 5%+ yields appeared first on The Motley Fool Australia.

We don't necessarily need to be able t access the income immediately for it to be a good investment – it could be a great asset because of earnings stability and the more consistent returns that it delivers year to year.

Considering superannuation has a lower tax rate, there's less of a drag on after tax passive income returns compared to investments outside of super for a full-time working Australian.

Plenty of investors can invest in passive income assets through self-managed superannuation funds (SMSFs). Other super funds also offer the ability to invest in areas such as S&P/ASX 300 Index (ASX: XKO) shares – there are plenty of options within that index for income.

How to generate $2,500 of monthly passive income from superannuation

Each investor's situation will be different, so there's no one-size-fits-all approach that I can outline to say what the net income would be. Therefore, I'll focus on the gross income, before taxes and costs.

Generating $2,500 of monthly passive income equates to $30,000 per year.

The amount required to be invested would depend on the dividend yield (or interest rate) of the investments.

For example, if someone had $1 million invested with a 3% dividend yield, that would generate $30,000 of annual income.

But, with a larger dividend yield, an investor wouldn't need as much in superannuation to create that same level of annual/monthly passive income.

For example, with a 4% dividend yield, an investor would need $750,000.

A 5% dividend yield suggests investors would need a $600,000 portfolio.

If the dividend yield were 6% then it would require just a $500,000 portfolio.

Where I'd invest for a high yield

If I were looking for investments to unlock a high level of monthly passive income, I'd focus on businesses with a good dividend yield.

I'd look at names like MFF Capital Investments Ltd (ASX: MFF), L1 Long Short Fund Ltd (ASX: LSF), WCM Global Growth Ltd (ASX: WQG), Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), Rural Funds Group (ASX: RFF), Universal Store Holdings Ltd (ASX: UNI) and Hearts and Minds Investments Ltd (ASX: HM1).

But, I wouldn't want to forget about somewhat lower-yielding businesses that have a track record of regular dividend growth as well as attractive capital growth.

The post How much is needed in superannuation to target a $2,500 monthly passive income? appeared first on The Motley Fool Australia.

When a share price goes lower, it boosts the dividend yield on offer. Therefore, when the opportunity is there, I think it's worth jumping on. For example, if a business with a 7% dividend yield sees a 10% share price fall, the yield on offer becomes 7.7%.

The two businesses below have some of the most appealing dividend yields, partly because I expect ongoing payout growth.

Universal Store Holdings Ltd (ASX: UNI)

I think Universal Store is one of the most underrated businesses on the ASX for dividends because of both its yield and its impressive growth.

In my view, it's important that a good ASX dividend share regularly increases its payout to help offset (or outpace) inflation and ensure our bank account grows in real terms.

Universal Store is best-known for two businesses within its stable – Universal Store and Perfect Stranger. The company aims to sell premium apparel to fashion-focused younger shoppers in Australia.

It is delivering excellent levels of growth – in the first half of FY26, group sales increased 14.2% to $209.6 million, with Universal Store sales rising 11.9% to $174.8 million and Perfect Stranger sales soaring 41.5% to $17.8 million.

The sales growth supported a 22% rise in underlying net profit after tax (NPAT) to $28.3 million. The business' offering is clearly resonating with customers, particularly the Perfect Stranger brand. Its interim dividend was hiked by 18.1% per share.

The ASX dividend share is expecting to open more Universal Store and Perfect Stranger stores in the second half of FY26, as well as in the coming years. The increased scale could see ongoing sales strength and improving profit margins.

According to the forecast on Commsec, it's trading with a projected FY27 grossed-up dividend yield of 8.9%, including franking credits, at the time of writing.

Future Generation Australia Ltd (ASX: FGX)

The other ASX dividend share I want to tell you about is a listed investment company (LIC) that doesn't charge any management fees or performance fees. Instead, it donates 1% of its net assets each year to youth charities.

Its actual investments are a variety of funds from different fund managers who are all happy to work pro bono.

This investment style means investors have exposure to hundreds of underlying businesses, which are typically smaller (and have more growth potential) than what the S&P/ASX 200 Index (ASX: XJO) is weighted to.

As a LIC, Future Generation Australia is able to steadily grow its annual dividend per share from investment returns it has made in the current year or previous years.

In the most recent result, Future Generation Australia decided to increase its annual dividend per share by around 3% to 7.2 cents. That translates into a grossed-up dividend yield of approximately 7.5%, including franking credits.

I'm projecting a 7.75% grossed-up dividend yield (at the time of writing), including franking credits, for FY27.

The post Get paid huge amounts of cash to own these ASX dividend shares! appeared first on The Motley Fool Australia.

It recently named a number of smaller companies that it believes offer attractive upside.

Here are three ASX shares that have been given the thumbs up:

AMA Group Ltd (ASX: AMA)

This accident repair business is one of Bell Potter's preferred smaller ASX shares.

The broker sees value in AMA Group as the company continues to improve following a difficult period, with its scale and integration capability giving it leverage to better conditions.

Commenting on AMA Group, Bell Potter said:

AMA Group is the largest accident repair group in Australia with approximately 138 vehicle panel repair shops. The company also has a presence in New Zealand with 5 vehicle panel repair shops. AMA sold its manufacturing business in 1HFY21 and its remanufacturer of automatic transmissions – called Fluid Drive – in 1HFY23 so is now almost a pure play accident repair group. The only part of the company outside of panel repair is the Supply business – called ACM parts – which sells a range of new, aftermarket and recycled parts and consumables.

This business now, however, is flagged for sale. The company has a strong track record of successful integrations, and any announcements could trigger a rerating from where it currently trades at a discount to its long-term valuation average.

Nick Scali Ltd (ASX: NCK)

This furniture retailer is another ASX share that Bell Potter is positive on.

It likes Nick Scali due to its store rollout plans and expansion opportunities, particularly in the UK. Bell Potter explains:

Nick Scali is an Australian retailer specialising in household furniture and related accessories, operating under the core Nick Scali brand as well as the Plush banner. >90% of sales are completed in-store, with the company maintaining a substantial physical presence with over 100 showrooms across Australia and New Zealand, and has recently expanded into the UK, which now contributes around 8% of total revenue.

Looking ahead, the key growth drivers include the continued roll-out of Nick Scali stores in the UK, supported by the refurbishment of acquired Fabb locations, and the ability to leverage the group's established supply base to drive scale efficiencies and margin expansion.

Universal Store Holdings Ltd (ASX: UNI)

This youth fashion retailer is also rated positively by the broker. Bell Potter sees appeal in Universal Store's rollout strategy, quality metrics, and valuation. The broker said:

Universal Store Holdings is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI will continue to increase store numbers over the next few years, supporting earnings growth of 11% p.a. Valuation looks attractive, trading on a forward P/E of ~13.4x. UNI is a quality small cap (ROE ~26%) that is executing on its rollout strategy.

The post 3 ASX shares Bell Potter rates as top buys appeared first on The Motley Fool Australia.

For me, a big dividend yield is not one of the first things that I look for. Instead, I want to see that the business is regularly increasing its payout. That's a good sign that the business is headed in the right direction and growing its underlying earnings/value.

Plus, having your investment income regularly grow is a good defence against inflation. So, I'm going to mention three businesses that have regularly increased their payouts, though none of them has increased their payouts for as many years in a row as Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the leading retail businesses in Australia, with a number of brands under its wings including Bunnings, Kmart, Officeworks and Priceline. It also has a compelling chemicals, energy and fertiliser business called WesCEF.

The ASX dividend share has increased its dividend each year since the onset of COVID-19, following the divestment of the Coles Group Ltd (ASX: COL) business several years ago. It grew its payout in FY21 and hasn't stopped hiking the dividend.

Wesfarmers has benefited from the expansion of both the store network and product ranges at Kmart and Bunnings, which has helped improve its profitability and increase the return on capital (ROC).

According to CMC Invest, it's expected to grow its annual payout to $2.206 per share in FY26, translating into a grossed-up dividend yield of 4.3%, including franking credits, at the time of writing.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is the owner of a number of premium youth apparel businesses, including Universal Store and Perfect Stranger.

Its success has been driven by solid like-for-like growth at its existing store network and regular expansion of its store network. Perfect Stranger is delivering excellent total sales growth, I'm expecting it to drive the company's overall success in the coming years.

The ASX dividend share has increased its annual dividend per share each year since it first started paying a dividend in FY21.

The projection on CMC Invest suggests the business could pay an annual dividend per share of 42.5 cents in FY26. That translates into a grossed-up dividend yield of 8.1%, including franking credits, at the time of writing.

APA Group (ASX: APA)

APA has one of the longest records when it comes to passive income growth.

This ASX dividend share owns various energy infrastructure, including a huge gas pipeline network, gas-powered energy generation and other gas infrastructure, renewable energy generation and electricity transmission assets.

With most of its revenue linked to inflation and steady expansion of its asset portfolio, the business has been able to generate more cash flow and fund higher distributions.

The business is expecting to increase its annual payout to 58 cents per security in FY26, which translates into a distribution yield of 5.8%.

The post 3 ASX dividend shares raising dividends like clockwork appeared first on The Motley Fool Australia.

But which ones could be buys in April?

Let's look at three that analysts are currently recommending as buys to their clients. They are as follows:

Centuria Industrial REIT (ASX: CIP)

UBS thinks that Centuria Industrial REIT could be a top ASX dividend share to buy in April.

It is an industrial property company that owns a portfolio of high-quality industrial assets that is situated in urban infill locations throughout Australia and is underpinned by a quality and diverse tenant base.

UBS believes the company is positioned to pay dividends per share of 17 cents in FY 2026 and in FY 2027. Based on its current share price of $2.96, this would mean dividend yields of 5.75%.

The broker also sees 15% upside with its buy rating and $3.40 price target.

Sonic Healthcare Ltd (ASX: SHL)

Another ASX dividend share that could be a top buy in April is Sonic Healthcare.

It is a leading pathology and diagnostic imaging provider with operations across Australia, Europe, and the United States.

The team at Bell Potter is positive and thinks it could be a great option. This is based on its belief that the company's performance is about to improve meaningfully. The broker highlights that this is expected to be "driven by right sizing the business, the impact of acquisitions in FY24 and normalising organic operations post COVID."

With respect to dividends, Bell Potter is forecasting Sonic Healthcare to pay dividends per share of $1.09 in FY 2026 and then $1.11 in FY 2027. Based on its current share price of $20.53, this represents dividend yields of 5.3% and 5.4%, respectively.

Bell Potter has a buy rating and $28.75 price target on its shares, which implies potential upside of 40%.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX dividend share that could be a top pick for income investors in April is Universal Store.

It is the youth fashion retailer behind the eponymous Universal Store brand, as well as Thrills and Perfect Stranger.

Morgans believes the company's positive form can continue and expects this to underpin further dividend increases.

It is forecasting fully franked dividends of 41 cents per share in FY 2026 and 46 cents per share in FY 2027. Based on its current share price of $7.32, this equates to dividend yields of 5.6% and 6.3%, respectively.

Morgans has a buy rating and $10.60 price target on its shares. This implies potential upside of 45% for investors.

The post 3 cheap ASX dividend shares offering 5% to 6% yields (and major upside) appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Clarity Pharmaceuticals Ltd (ASX: CU6)

The Clarity Pharmaceuticals share price is down almost 8% to $2.89. This follows the announcement of a commercial manufacturing agreement for 64Cu-SAR-bisPSMA with Nucleus Radiopharma. It is an innovative contract development and manufacturing organisation in the radiopharmaceutical industry. Clarity's executive chair, Dr Alan Taylor, said: "Clarity is building a strong foundation with its supply and manufacturing strategy to support a large-scale commercial rollout of 64Cu-SARbisPSMA from day one, with capability to supply not only the entire existing PSMA PET market, but a larger pool of patients that could benefit from our optimised product, given the promising data we have seen in the clinic to date."

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is down 1% to $8.93. This follows the release of a market update from the airline operator today. As was widely expected, Qantas revealed that fuel costs have risen strongly. It now expects jet fuel costs for the second half to be $3.1 billion to $3.3 billion. This is more than double previous expectations. It also advised that net debt is now expected at or above the midpoint, but within Qantas' target range. And while the $300 million interim dividend will be paid on 15 April, its $150 million buyback remains on hold.

Universal Store Holdings Ltd (ASX: UNI)

The Universal Store share price is down 3% to $7.20. This morning, this youth fashion retailer announced the exit of its CEO, Alice Barbery, later this year. However, Universal Store has acted fast and named George Do as her successor. Universal Store's chair, Peter Birtles, said: "On behalf of the Board and the Universal team, I would like to thank Alice for her outstanding leadership of the Company over the past 17 years. During this time, she has overseen the continued strong growth and performance of the Universal Store retail banner, the creation and successful rollout of the Perfect Stranger retail banner and the acquisition of the CTC business."

Westpac Banking Corp (ASX: WBC)

The Westpac share price is down 2.5% to $41.60. Investors have been selling the banking giant's shares following the release of an update on its first-half expectations. The bank advised that: "Balance sheet momentum was solid with lending and deposit growth of 4% and 3% respectively; Core NIM, excluding the timing impact of rate rises, was stable in 2Q26; Ongoing productivity initiatives supported a 2% decline in expenses; and Asset quality metrics improved and the CET1 capital ratio strengthened in 2Q26."

The post Why Clarity, Qantas, Universal Store, and Westpac shares are falling today appeared first on The Motley Fool Australia.

The stock is down 2.29% to $7.24 in morning trade, bringing its decline to almost 20% over the past month. This also leaves it well below the record high of $9.88 reached earlier this year.

Today's weakness comes only weeks after Universal reported a strong half-year result that included healthy sales growth and a higher dividend.

The focus now appears to be moving away from recent momentum and toward how the leadership handover may influence the group's next stage of growth.

A founder-era chapter is coming to an end

Before market open, Universal announced that its Group Managing Director and Chief Executive Officer, Alice Barbery, will retire on 31 October 2026. She will step down after 17 years with the company.

Her replacement will be George Do, an internal executive who takes over from 1 November.

The succession plan appears deliberately measured. George joined the business in 2005, began on the shop floor, moved into the buying and product side, and most recently led the Universal Store and Perfect Stranger banners as CEO.

His long history with the business should give investors more confidence that the merchandising approach, brand direction, and retail strategy are unlikely to change materially.

Alice is also not leaving entirely. She is expected to join the board as a Non-Executive Director in February 2027 and continue supporting George during the handover period through consulting and advisory work.

Why investors aren't buying the handover yet

Discretionary retail stocks have become harder to please in recent weeks. This is especially after a strong run through 2025 and into early 2026 pushed expectations higher.

With the shares already pulling back, investors may now want proof that momentum across the group's brands can keep building.

The CEO change gives investors one more thing to keep an eye on, even though the replacement is coming from inside the business.

The key question now is whether the sales and earnings momentum across Universal Store, Perfect Stranger, Thrills, and CTC can carry through the second half.

Foolish Takeaway

To me, this looks more like investors trimming expectations after a strong run than a negative read-through on the CEO change.

The handover looks orderly, and the incoming CEO already knows the business well. Recent momentum across the brands also suggests the company still has a solid platform to keep growing.

The post This ASX retail stock is sliding after a surprise leadership announcement appeared first on The Motley Fool Australia.

The ASX is known for having a relatively high dividend payout ratio, partially because companies want to unlock some of the franking credits for shareholders. The higher payout of franking credits also means a larger cash payout too.

Which businesses are providing a good and growing cash payout? These two are among my favourites.

Coles Group Ltd (ASX: COL)

Coles is an impressive supermarket business with a large national store network and a significant supply chain. It's those two elements that give the business a competitive advantage over most other supermarket businesses across the country.

Another advantage that Coles has over smaller competitors is that it offers a wide range of own-brand and exclusive products, as well as a significant e-commerce offering.

A growing Australian population is a useful tailwind for Australian stocks' earnings, while high-tech new warehouses will improve margins due to efficiencies and stock flow, as well as providing a greater online offering.

In terms of the dividend, Coles has been consistently growing its annual payout each year since 2019 when it first started paying a dividend to shareholders following the demerger from Wesfarmers Ltd (ASX: WES).

In the FY26 half-year result, Coles reported that its underlying net profit after tax (NPAT) grew by 12.5% and the interim dividend was hiked 10.8% to 41 cents per share.

The forecast on Commsec suggests the business could pay an annual dividend per share of 76.6 cents in FY26. That suggests a possible grossed-up dividend yield of 5%, including franking credits, for FY26.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is a leading ASX retail share that sells to younger, fashion-focused shoppers. Its two main brands are Universal Store and Perfect Stranger, which are driving very impressive progress for the business.

Its apparel offering is clearly resonating with customers because growth remains strong and in double-digit territory. In the first half of FY26, it reported that total revenue increased by 14.2% and underlying net profit grew by 22%.

The good profit growth enabled the Australian stock to hike its interim dividend by 18.1% to 26 cents per share.

I'm expecting the company's net profit could continue rising thanks to a growing store network, rising profit margins and solid like-for-like sales growth from its existing store network.

The second half of FY26 started strongly, with sales growth of 13.5% year-over-year. I think this bodes well for dividend growth for the rest of FY26.

The projection on Commsec suggests that the business could pay an annual dividend per share of 40.6 cents per share in FY26, translating into a possible grossed-up dividend yield of 7.3%, including franking credits.

The post Grow your dividends alongside your job earnings with these Australian stocks appeared first on The Motley Fool Australia.

Universal Store is a fashion-focused ASX retail share that sells clothes focused on younger shoppers. Its main two brands are Universal Store and Perfect Stranger, though it also sells through CTC (which includes Thrills and Worship).

Unfortunately for shareholders, the Universal Store share price has already 14% in March and it seems likely that the business could face more pain this week. I think it'd be an even more attractive buy.

Continuing impressive growth

The FY26 half-year result was a strong reflection of its ability to deliver growth even in challenging trading conditions.

In the first six months of the 2026 financial year, group sales grew 14.2% to $209.6 million, with Universal Store sales growth of 11.9% to $174.8 million and Perfect Stranger growth of 41.5% to $17.8 million. Even CTC delivered sales growth, with a rise of 4.8% to $23.2 million.

Profitability is increasing too. Increasing scale helped the gross profit margin rise 150 basis points (1.50%) to 62.1%. Combined with cost discipline, the underlying operating profit (EBIT) grew 23.2% to $43.6 million and underlying net profit after tax (NPAT) rose 22% to $28.3 million.

I'm particularly excited by the potential of the Perfect Stranger brand which is rapidly growing. I expect it to make a greater contribution to the ASX value stock as time goes on. Three new stores were opened during the period, giving the brand 22 stores at the end of HY26.

The business is expecting to grow its overall store count by at least 13 in FY26 and management are pursuing additional store opportunities while being prudent.

In the first several weeks of the second half of FY26, the business reported direct-to-customer sales growth of 13.5%, which included Perfect Stranger Sales growth of 39%.

This isn't just one year of strength, but it has delivered year after year performance since the onset of COVID-19.

It's growing rapidly, but it isn't priced that highly.

The ASX value stock's cheap valuation

The experts at UBS project that the business could make net profit of $43 million in FY26, which translates into earnings per share (EPS) of 55 cents.

At the current Universal Store share price, that means it's trading at 15x FY26's estimated earnings.

In terms of next year's valuation, it's forecast by UBS to see net profit grow by 14% to $49 million, putting it at 13x FY27's estimated earnings. With the potential profit growth figure similar to the P/E ratio number, we're talking about a PEG ratio of close to 1, which is very attractive in my book.

Over the next three years, I think this ASX value stock has a great shot at outperforming the S&P/ASX 200 Index (ASX: XJO), including the dividends.

The post After falling 14%, this ASX value stock looks filthy cheap with a P/E of just 15! appeared first on The Motley Fool Australia.

To narrow things down, let's take a look at two ASX dividend shares that Bell Potter is bullish on and believes could rise 20% to 30% from current levels.

Here's what the broker is recommending to clients:

Rural Funds Group (ASX: RFF)

Bell Potter thinks this agricultural property company's shares are undervalued at current levels.

However, the broker sees opportunities to unlock value, which could cause a re-rating of its shares. It explains:

The ~35% discount to market NAV is well above the historical average 5% premium since listing. Counterparty profitability indicators have been improving and farm asset values have been resilient, which would suggest that the underearning on unleased assets is the largest performance drain.

Exiting or leasing these assets (combined value ~$387m) would result in reasonable AFFO accretion (14-18% on FY26e PF AFFO) with the scope to also reduce gearing, with this likely to be the greatest share price catalyst. We would expect execution against asset sales to emerge in CY26e.

Bell Potter has a buy rating and $2.50 price target on its shares. This implies potential upside of 20% for investors from current levels.

The broker also expects a 5.65% dividend yield from Rural Funds in FY 2026.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that the broker is bullish on is Universal Store.

It is the youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.

The broker thinks that the company's shares are undervalued based on its positive growth outlook. This is expected to be underpinned by an expansion in its private label product penetration and its leading position in youth fashion. It explains:

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging broader category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution. We continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

Bell Potter has a buy rating and $10.50 price target on its shares. This implies potential upside of approximately 30% for investors.

In addition, a fully franked 4.5% dividend yield is expected by the broker in FY 2026.

The post These cheap ASX dividend shares could rise 20% to 30% appeared first on The Motley Fool Australia.

It's not often that share prices go through a decline of 10% or more. Widespread selling is painful as a shareholder but there are lower valuations (almost) across the board for brave prospective investors.

Sell-offs give us the chance to search across the S&P/ASX 300 Index (ASX: XKO) (or smaller) to find beaten-up opportunities which could then bounce back when market confidence returns.

Assuming the investment still has a positive long-term outlook, a large decline is a great opportunity to see big returns if/when there's a recovery.

For example, if a share price drops by 50%, then returning to the previous position would be a return of 100%! Of course, it's not as easy as that to find the right opportunities. I'd only go for investments I believe can deliver higher earnings in three years from now.

Where I'm seeing exciting ASX share opportunities

In my view, there are multiple areas where the market is being too bearish on certain ASX shares.

The ASX tech share (and tech-related) space is awash with names that have been hit by AI worries, then hit again by the prospect of inflation and higher interest rates. I'm thinking of names like Siteminder Ltd (ASX: SDR), TechnologyOne Ltd (ASX: TNE), Xero Ltd (ASX: XRO), REA Group Ltd (ASX: REA) and Pro Medicus Ltd (ASX: PME).

Businesses in the funds management space are certainly feeling the pain of lower share markets, as well as a hit to market confidence. I think the businesses of Pinnacle Investment Management Group Ltd (ASX: PNI), L1 Group Ltd (ASX: L1G) and Australian Ethical Investment Ltd (ASX: AEF) are very compelling options right now.

The ASX retail share space is appealing as well because market confidence in them can be cyclical. I think growing retail businesses could be particularly good long-term investments during this period, such as Temple & Webster Group Ltd (ASX: TPW), Lovisa Holdings Ltd (ASX: LOV), Universal Store Holdings Ltd (ASX: UNI) and Nick Scali Ltd (ASX: NCK).

Finally, I want to highlight some other ASX growth shares that have been caught up in the sell-off but could be generate significantly higher profit in three to five years. I'm attracted to Breville Group Ltd (ASX: BRG), Sigma Healthcare Ltd (ASX: SIG), Tuas Ltd (ASX: TUA) and Guzman Y Gomez Ltd (ASX: GYG).

The post Why buying ASX shares in March could supercharge your wealth appeared first on The Motley Fool Australia.

But, given how share prices have drifted lower this year, I'm seeing a great opportunity for investors to grab ASX shares while dividend yields are higher.

Don't forget, we saw a few years ago how some businesses were able to accelerate their revenue growth amid the inflationary period – they were not just helpless bystanders in the situation.

Why do interest rates matter for ASX shares?

Interest rates play an important role in how much investors are willing to pay for an asset. It acts like gravity – when interest rates go lower, asset prices can jump higher. But, the opposite is typically true when interest rates go up – it's a significant headwind for asset valuations.

But, share prices can still go up in a rising rate environment if the operating profit/net profit of the business or asset increases. The multiple of earnings that investors are willing to pay is just one part of the equation.

Warren Buffett, the legendary American investor from Omaha, once explained why interest rates are so important for valuations. Buffett said:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

Investor expectations of rate rises this year has led to lower share prices for some businesses, along with the oil price volatility.

How does it affect the passive income?

When the share price of an ASX dividend share falls, it can lead to a double whammy of a better valuation and a better dividend yield.

A dividend yield is determined by the size of the payout and the valuation of the business. When share prices go lower, the dividend yield increases.

For example, if a business had a dividend yield of 5% and the share price falls 10%, the dividend yield becomes 5.5%. If it fell 20%, the dividend yield would be 6%.

I like investing at times like these, as it really boosts the potential dividend yield.

Is it a once-in-a-decade opportunity to buy passive income shares? The 2020s have already seen COVID-19, the inflation and tariff related sell-offs, so the declines have been more than once-in-a-decade.

But, this is certainly a rare opportunity to buy ASX dividend shares with a good dividend yield.

What I'd invest in

There are a wide range of ASX dividend shares that are trading at attractive prices with a good dividend yield.

I'm thinking names like Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), Medibank Private Ltd (ASX: MPL), Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Coles Group Ltd (ASX: COL), Australian Foundation Investment Co Ltd (ASX: AFI), WCM Global Growth Ltd (ASX: WQG), JB Hi-Fi Ltd (ASX: JBH), Universal Store Holdings Ltd (ASX: UNI), Nick Scali Ltd (ASX: NCK) and Lovisa Holdings Ltd (ASX: LOV).

I'm optimistic that the above names can provide investors with a diversified and growing source of passive income over time.

The post A once-in-a-decade chance to earn a supersized passive income from ASX shares? appeared first on The Motley Fool Australia.

That's because the team at Bell Potter has just named a number of ASX dividend shares as best buys for the month of March.

Listed below are two that it is bullish on. Here's what it is saying about them:

COG Financial Services Ltd (ASX: COG)

This asset finance company could be a best buy according to Bell Potter.

The broker believes it is an ASX dividend share to buy due to its external accumulation strategy, which it expects to support attractive dividend yields. Bell Potter said:

COG Financial is a diversified conglomerate of distribution businesses focused on Australia. The group principally provides access to credit providers (and related insurance) for yellow commercial goods.

This is delivered through a nationwide broker net. In addition, the company has some balance sheet funded direct originations, with a focus on capturing some of the overflow for non-prime chattel mortgages. A proportion of this is offered under peer-to-peer lending. Following the acquisition of Paywise, the company has articulated an external accumulation strategy, focussed on novated leasing and salary packaging services.

As for income, Bell Potter is forecasting fully franked dividends of 7 cents per share in FY 2026 and then 8.9 cents per share in FY 2027. Based on its current share price of $1.35, this would mean dividend yields of 5.2% and 6.6%, respectively, for income investors.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that Bell Potter is bullish on is youth fashion retailer Universal Store.

It thinks its shares are undervalued based on its current PE ratio and positive medium-term growth outlook. It explains:

Universal Store Holdings is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI will continue to increase store numbers over the next few years, supporting earnings growth of 10% p.a.. Valuation looks attractive, trading on a forward P/E of ~14.1x. UNI is a quality small cap (ROE ~26%) that is executing on its rollout strategy.

With respect to dividends, Bell Potter is expecting the company to reward shareholders with fully franked payouts of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.64, this would mean attractive dividend yields of 4.3% and 4.8%, respectively, over the next two financial years.

The post Bell Potter names more of the best ASX dividend shares to buy this month appeared first on The Motley Fool Australia.

I'm going to look at two ASX shares which some of the highest number of analyst buy ratings on the ASX.

We're not just talking about one or two positive ratings, but several, with most/all of the ratings being a buy.

Let's get into those exciting ASX shares.

Coles Group Ltd (ASX: COL)

According to the Commsec collation of analyst ratings on the business, there are currently 15 buys.

The business recently reported its FY26 half-year result, which was pleasing to the broker UBS. The broker said that the HY26 operating profit (EBIT) and net profit (NPAT) were both in line with market expectations.

However, the trading of the first seven weeks of the second half of FY26 of growth of 3.7% was below UBS' expectations of 4.4% growth.

UBS believes that execution and price trust favour Coles over its main competitor because of "promotional effectiveness (fewer, better), while recently delivered investments (e.g. Witron ADC (availability), Ocado CFCs (online)) provide cost leadership and confidence about CY26E sales growth."

The broker also prefers Coles over Woolworths Group Ltd (ASX: WOW) because there is a wider-than-average price/earnings (P/E) ratio gap based on the one-year forward earnings.

UBS predicts Coles could generate a net profit of $1.25 billion in FY26, translating into a forward P/E ratio of under 23, at the time of writing.  

Universal Store Holdings Ltd (ASX: UNI)

According to the Commsec collation of analyst ratings on the business, there are currently 11 buys.

UBS describes Universal Store as a specialty youth casual fashion retailer, operating under the Universal Store, Perfect Stranger and Thrills store banners.

The broker noted that Universal Store's operating profit (EBIT) and net profit beat analyst expectations with stronger sales and a higher gross profit margin.

UBS explained why it's optimistic about the ASX share:

Retain buy rating given confidence in the revenue & gross margin outlook, driven by market share gains from strong execution, and leveraging the generally more resilient youth consumer.  

We remain confident in the UNI revenue outlook due to merchants that judiciously adapt product ranges & persistently strong in-store execution, which drives customer conversion & basket size expansion. These drivers support sustained market share gains in the fragmented youth apparel market.

A secondary tailwind is the youth consumer where, based on UBS Research, spending intentions are stronger than the all-age consumer and apparel & footwear categories are of greater importance (remain strong & above the all-age consumer).

Broker UBS estimates that Universal Store could generate a net profit of $43 million in FY26. That means, at the time of writing, the Universal Store share price is valued at 15x FY26's estimated earnings.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

I'm not about to suggest that Aussies go out there and try to find a 15% dividend yield.

But, if we invest right, investors could end up generating a 15% yield on their initial investment. It will take some patience, though.

It's important to remember that some large dividend yields may not stand the test of time. A dividend cut may be on the cards for businesses that seem to have huge yields because investors have pushed the share price lower, betting that earnings and the payout are going to drop in the near future.

 I think there are two ways where we can unlock a large dividend yield of 15% (or more). Let's look at how.

Big starting dividend yield

I wouldn't expect any business to offer a sustainable starting dividend yield of 15%. But, there are some with yields of between 9% to 11% where I expect the business can maintain and slowly grow its payout in the coming years.

While it might take a while to reach 15%, I think this sort of business could deliver a big dividend yield at the start and become even larger over time.

There are some names that come to mind for large payouts such as WAM Microcap Ltd (ASX: WMI), Hearts and Minds Investments Ltd (ASX: HM1) and Shaver Shop Group Ltd (ASX: SSG).

With those sorts of dividend yields, if someone invested $10,000 then they could unlock $1,000 of annual income straight away.

Dividend growth

While huge yields may appeal to some investors, it could be a better call to look at businesses that are growing their payout at a faster pace. That could lead to stronger total shareholder returns (TSR) and eventually the yield could surpass what a higher-yielding business offers.

For example, if a 10% yielding business grows its payout by 2% per year, it becomes 15% yield in around 20 years. A business with a 5% dividend yield that's growing the payout at 10% per year becomes a 15% dividend yield on the initial investment after 12 years.

Of course, we can't know for sure what businesses are going to do with their payouts over the next decade or more.

What sort of businesses have a solid starting payout today and could deliver strong dividend growth over the longer-term?

I'd look at apparel retailer Universal Store Holdings Ltd (ASX: UNI), jewellery retailer Lovisa Holdings Ltd (ASX: LOV), investments business Pinnacle Investment Management Group Ltd (ASX: PNI) and ethical fund manager Australian Ethical Investment Ltd (ASX: AEF).

Either way, I think there are some very exciting investments out there for investors looking for a lot of passive income.

The post How to invest $10,000 to aim for a 15% dividend yield appeared first on The Motley Fool Australia.

Not only do they provide investors with regular income, but many of the best dividend payers also grow their profits over time. When that happens, dividends can steadily increase as well.

For investors thinking long term, here are five ASX dividend shares that could be worth considering for the next decade.

Accent Group Ltd (ASX: AX1)

Accent Group is one of Australia's leading footwear retailers and distributors.

The company operates well-known brands and retail chains including Hype DC, Platypus, and The Athlete's Foot, while also distributing global brands such as Skechers and Vans across Australia and New Zealand.

Over time, Accent has steadily expanded its store network while building a strong online presence. This growth has supported rising sales and solid cash generation, which has enabled the company to pay attractive dividends.

While the last 12 months have been difficult, if consumer spending improves and the company continues to expand its retail footprint, Accent could remain a reliable income generator for shareholders.

APA Group (ASX: APA)

APA Group is one of the most established infrastructure dividend shares on the ASX.

The company owns and operates a large network of energy infrastructure assets, including gas pipelines and energy transmission systems across Australia.

These assets often operate under long-term contracts, which helps provide predictable revenue and cash flow. This stability has allowed APA to pay consistent dividends for many years.

APA is also investing in renewable energy and electricity transmission projects, which could help support future earnings growth as Australia's energy system evolves.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is another ASX share that has rewarded shareholders with dividends for decades.

The retailer sells furniture, electronics, and household goods through a network of franchised stores across Australia and international markets.

In addition to its retail operations, Harvey Norman also owns a large property portfolio, which provides an additional layer of asset backing to the business.

While retail earnings can fluctuate with economic conditions, the company's strong balance sheet and property assets have historically supported generous dividend payments.

Macquarie Group Ltd (ASX: MQG)

Macquarie Group has long been considered one of Australia's highest-quality financial institutions.

It operates across asset management, infrastructure investment, commodities trading, and investment banking.

From these operations, the company has built a global platform, which has a long history of delivering strong profit growth through multiple economic cycles.

As earnings have expanded, Macquarie has steadily increased its dividend payments to shareholders. If the company continues to grow its international operations, its dividend could also continue rising over time.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is a youth-focused fashion retailer that has been growing rapidly in recent years.

The company operates several retail brands including Universal Store, Perfect Stranger, and Thrills. These businesses target younger consumers and have been expanding their store networks across Australia.

Despite only being listed for five years, Universal Store has already built a reputation for strong profitability and healthy cash generation.

That financial strength has allowed it to pay attractive dividends while still investing in future growth.

The post 5 ASX dividend shares to hold for the next decade appeared first on The Motley Fool Australia.

That's because according to analysts at Morgans, these stocks could be destined to rise strongly from current levels.

And before they do, it is urging income investors to lock in their forecast dividend yields now. It said:

Accent Group Ltd (ASX: AX1)

This footwear-focused retailer is going through a tough period, but Morgans thinks it is worth sticking with it. This is especially the case given its cheap valuation and positive medium term outlook. It said:

AX1 reported 1H26 EBIT which was down 30% yoy to $56.5m, in line with the revised guidance range provided in November ($55-60m). The decline was driven by soft comp sales and significant operating de-leverage from lower gross margins. AX1 has made the unsurprising decision to cease operations of loss-making Glue store, which contributed $8.4m EBIT loss in 1H26. On an underlying basis, EBIT fell 10%. We see this providing incremental benefit on group earnings in FY27. We have increased our EBIT by 1.5% in FY26 and by 11% in FY27.

Our blended valuation lifts to $1.30 (from $1.10). We have upgraded to a BUY (from HOLD). We see significant earnings growth in FY27, driven by underlying FY26 run-rate (ex-Glue), this makes the stock look inexpensive at ~10x FY27 P/E and ~5.6% yield.

Morgans is forecasting fully franked dividends of 4.3 cents per share in FY 2026 and then 6.3 cents per share in FY 2027. Based on its current share price of $1.00, this would mean dividend yields of 4.3% and 6.3%, respectively.

As mentioned above, it has a buy rating and $1.30 price target on the ASX dividend stock. This implies potential upside of 30% over the next 12 months.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend stock that Morgans is tipping as a buy is youth fashion retailer Universal Store.

It was impressed with its performance in the first half and positive start to the second half. It said:

UNI reported a strong 1H26 result which was ahead of expectations. Sales were up 14.2% to $209.6m and EBIT grew by 23.2% to $43.6m, EBIT margin up 150bps. The strong sales momentum has continued into the first 7 weeks of the 2H, despite the challenging comps (+20%). UNI has consistently delivered through a challenging retail environment, +7.9% LFL sales CAGR over the last 6 years.

With respect to income, the broker has pencilled in fully franked dividends of 41 cents per share in FY 2026 and then 46 cents per share in FY 2027. Based on its current share price of $8.05, this would mean dividend yields of 5.1% and 5.7%, respectively.

Morgans has a buy rating and $10.60 price target on its shares. This suggests that upside of 32% is possible from current levels.

The post Grab these ASX dividend stocks now, before their prices rise and yields drop appeared first on The Motley Fool Australia.