2 ASX dividend shares that just delivered even bigger payouts

JB Hi-Fi is one of the ASX dividend shares that just increased the dividend again.

| More on:
Telstra dividend upgrade best asx share price dividend growth represented by fingers walking along growing piles of coins upgrade

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Reporting season continues, but there are some ASX dividend shares that just increased the dividend to shareholders.

Some businesses have seen a lot of growth in this strange environment because of COVID-19. Time will tell whether that continues or not.

But the leadership decided to increase dividend payouts from these two businesses:

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of Australia's biggest retailers. According to the ASX, it currently has a market capitalisation of $5.7 billion.

Total sales increased by 12.6% to $8.9 billion, whilst net profit after tax (NPAT) grew 67.4% to $506.1 million and earnings per share (EPS) rose 67.5% to 440.8 cents. Online sales grew by 78.1% over the year to $1.1 billion.

The Good Guys in-particular saw a large increase in profitability, which saw the earnings before interest and tax (EBIT) improve 318 basis points to 7.9%. The gross profit margin increased 189 basis points to 22.4% and the cost of doing business margin improved 100 basis points to 11.7%.

With that profit, the ASX dividend share decided to declare a final dividend of $1.07 per share – an increase of 18.9%. That brought the total dividend for FY21 to $2.87 per share, up 51.9%.

That payment of the annual dividend represented 65% of net profit after tax (NPAT).

However, in a trading update for FY22 to 15 August 2021, it saw JB Hi-Fi Australia sales fall 14.6% and The Good Guys saw a decline of 8.1%.

The broker Credit Suisse rates JB Hi-Fi as a buy, with a price target of $56.48. In FY22, Credit Suisse is projecting JB Hi-Fi will pay a grossed-up dividend yield of 6.7% at the current JB Hi-Fi share price.

Accent Group Ltd (ASX: AX1)

The footwear ASX dividend share revealed sizeable growth in FY21. Total sales rose 19.9% to $1.14 billion.

Accent's EBIT grew 32.1% to $124.9 million, NPAT increased 38.6% to $76.9 million and EPS went up 38.2% to 14.21 cents.

That growth gave the board the confidence to increase the full year dividend by 21.6% to 11.25 cents. At the current Accent share price, after falling 18% since 13 August 2021, it has a FY21 grossed-up dividend yield of 7.4%.

Accent's EBIT grew 32.1% to $124.9 million, NPAT increased 38.6% to $76.9 million and EPS went up 38.2% to 14.21 cents billion. Online sales grew 48%, representing 20.9% of total FY21 sales. It is aiming for online to be 30% of sales over time.

The company continues to target a growing store portfolio. It opened 90 new stores during the year and closed seven stores where required rent outcomes could not be achieved. Including the acquisition of Glue Store, the total store number grew to 638. New stores are performing strongly on more favourable rents than the existing portfolio.

The ASX dividend share said that in the first seven weeks of FY22, sales, including online, were down 16% compared to the prior corresponding period. However, digital sales continue to grow – in the last three weeks digital sales were up 66.7%.

It's still aiming for at least 10% compound EPS growth and wants to be defined by its retail innovation, cash conversion and growing returns on shareholder funds.

According to the forecast on Commsec, Accent will pay a fully franked dividend of 12.3 cents per share in FY23. That equates to a grossed-up dividend yield of 8.1%.

Should you invest $1,000 in Bhp Group right now?

Before you buy Bhp Group shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Bhp Group wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 3 April 2025

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

5 excellent ASX dividend shares to buy in May

Analysts think these shares are top picks for income investors next month.

Read more »

ETF written on cubes sitting on piles of coins.
Dividend Investing

How can an ASX investment in the Vanguard Australian Shares High Yield ETF (VHY) boost my passive income?

ETFs can be fantastic hands-off sources of passive income.

Read more »

A young male builder with his arms crossed leans against a brick wall and smiles.
Dividend Investing

Building up income: 2 ASX dividend shares I believe are a buy

These stocks are delivering pleasing passive income growth.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Is this a great opportunity to lock in big dividend yields for a second income?

Has the market selloff created an opportunity for income investors? Let's find out.

Read more »

An athlete runs fast with a trail of yellow smoke billowing out behind him.
Dividend Investing

Don't miss out on these buy-rated ASX 200 dividend shares

Analysts are bullish on these names. Let's find out why.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

Top broker says these ASX dividend stocks are strong buys

Here's why its analysts are feeling bullish on these names.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

Buy these highly rated ASX dividend stocks for 5% to 6% yields

These stocks could be quality picks for income investors according to analysts.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Dividend Investing

With an almost 7% dividend yield, is this ASX 200 share a buy?

This business offers significant passive income potential.

Read more »