Owning Fortescue Ltd (ASX: FMG) shares for the long-term has been rewarding when it comes to dividend income. But, it's not the only ASX dividend share that is capable of providing a large dividend yield.
There are a couple of reasons why investors may be unsettled by the idea of investing in the ASX mining share right now, such as the ongoing elevated tariffs between the US and China. There could be unhelpful effects on the Chinese economy, and therefore iron ore demand.
It's possible to take advantage of the volatile nature of some ASX shares, which isn't limited to just ASX mining shares. ASX retail shares can also provide large dividend income and sometimes trade at cheaper prices.
Let's look at two other ASX dividend share options for income-seeking investors.
This business owns a portfolio of premium youth fashion brands, across retail and wholesale businesses. Its key business is Universal Store and it also operates Perfect Stranger and CTC (through the THRILLS and Worship brands). It has a total of 109 physical stores across Australia.
Its strategy is to grow and develop its premium youth fashion apparel brands and retail formats to "deliver a carefully curated selection of on-trend apparel products to a target 16-35-year-old fashion focused customer."
The company is delivering impressive growth in a number of ways. In the FY25 half-year result, total sales increased 16.1% to $183.5 million, with Universal Store sales growth of 17.2% to $156.1 million and Perfect Stranger sales growth of 92.3% to $12.6 million.
Its solid profit margins are helping the company's net profit rise at a strong pace. HY25's gross profit margin improved 90 basis points to 60.6%, underlying operating profit (EBIT) rose 14.9% to $35.4 million and underlying net profit increased 16% to $23.2 million.
The business continues to roll out new stores around the country. I'm particularly excited by the potential of Perfect Stranger in the next few years.
This profit growth is helping the business pay a steadily-growing dividend. It increased its HY25 interim dividend by 33.3% to 22 cents per share, bringing the current grossed-up dividend yield to 7.4%, including franking credits.
This ASX dividend share describes itself as a specialty retailer of home fragrance products, offering Dusk-branded products at competitive prices across its stores and online store. It says it has grown to become the "leading Australian omni-channel specialty retailer" focused on home fragrance products.
It sells products like candles, ultrasonic diffusers, reed diffusers and essential oils, as well as fragrance-related homewares.
The business has been impacted by the higher cost of living hitting customers in the last few years, but it may be starting to show positive signs of improvement.
In the HY25 result, Dusk sales grew 12.3% to $87.4 million, gross profit increased 13.4% to $56.9 million, underlying operating profit (EBIT) grew 20% to $13.8 million and it declared a total dividend of 10 cents per share (including a 5 cents per share special dividend).
Dusk said its performance turned around thanks to a product-led strategy and a focus on the digital store performance. HY25 e-commerce sales jumped by 68%. According to the forecasts on Commsec, Dusk is projected to pay a grossed-up dividend yield of 14.3% in FY26, including franking credits. That's a very large yield, even compared to Fortescue shares.
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