Beginners: Here are 2 ASX dividend stocks to get your portfolio started!

I'd put these 2 stocks in the share shopping basket.

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ASX dividend stocks can be a useful place to start for beginner investors because the good stocks can provide a mixture of capital growth and dividends.

There are loads of different types of investments that people can choose to begin with – ASX blue-chip shares, ASX small-cap shares, international shares, exchange-traded funds (ETFs) and so on.

I think it could be useful to start by looking at good companies that we regularly see in our lives.

The two I'm going to mention are high-quality retailers that have impressive brands with plenty more growth potential.   

Premier Investments Limited (ASX: PMV)

This ASX dividend stock owns a number of different apparel brands including Smiggle, Peter Alexander, Portmans, Jay Jays, Jacqui E, Dotti and Just Jeans.

The two brands I think investors should be excited by are Smiggle and Peter Alexander. When a business expands offshore from Australia, it leads to a much bigger potential population to sell products to.

Smiggle products are sold in a number of different countries, including the United Kingdom, Ireland, New Zealand, Singapore, the US and Malaysia. It sells branded products for kids, like bags, pencil cases, lunch boxes and so on. In Australia, it has products related to the AFL, Spiderman, Mickey and Minnie Mouse, Barbie and Paw Patrol.

In its FY23 result, it said it wanted to open dozens of new stores and it's also expanding with wholesale partners, into places like Middle Eastern countries such as UAE, Qatar and others. Smiggle is also exploring potential new markets.

If Premier Investments can keep expanding its footprint, online sales, revenue and profit over time, then dividends and the Premier Investments share price could keep benefiting.

According to the estimate on Commsec, the ASX dividend stock could pay a grossed-up dividend yield of 6% in FY24 (which includes franking credits).

Wesfarmers Ltd (ASX: WES)

Wesfarmers is another high-quality retail business that has incredibly strong brands, including Bunnings, Kmart and Officeworks, which I'd call market leaders in their categories. Other sizeable businesses within Wesfarmers include Target, Catch and Priceline.

This ASX dividend stock wants to grow its dividend (and profit) for shareholders over time, which is exactly what I'm suggesting is good for beginners.

I'm a big fan of the company's bolt-on acquisition strategy to grow its divisions. For example, in recent times it bought Beaumont Tiles for Bunnings, and it has acquired Silk Laser Australia and Instantscripts for the healthcare division.

Wesfarmers' decision to expand into healthcare shows its ability to focus on the long-term – ageing demographics are a very powerful tailwind for businesses involved.

If Wesfarmers keeps re-investing in its great businesses, and acquiring new ones, it has an appealing outlook to keep performing.

In FY24, the business is projected to pay an annual dividend per share of $1.90, according to Commsec, which would be a grossed-up dividend yield of 4.7% (including franking credits).

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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 positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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