Get paid huge amounts of cash to own these ASX dividend shares

These 3 dividend stocks are paying investors large amounts of cash flow each year.

| More on:
three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.

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

ASX dividend shares that pay good dividend yields can be really appealing investments for cash flow.

But how do you find the best investment options? One metric that can help is the price/earnings (P/E) ratio. It tells us what multiple of its earnings a company is trading at — the higher the number, the more expensive it appears to be.

Companies that are priced on a low P/E ratio can have a high dividend yield. Bear in mind that some industries typically trade on a higher P/E ratio, like technology, while others, such as retail and fund managers, usually trade on a lower P/E ratio.

I would also look for businesses that can grow their earnings over the longer term because they can sustain the current dividend and potentially help push the payouts higher.

Let's look at three companies that I think fit this criteria.

Universal Store Holdings Ltd (ASX: UNI)

Created with Highcharts 11.4.3Universal Store PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Universal Store owns a number of "premium youth fashion brands". Its main retail businesses are Universal Store and CTC (which operates the THRILLS and Worship brands). The ASX dividend share is also rolling out Perfect Stranger as a standalone retail business.

The company has 100 stores and continues to open more – launching six new stores in the first half of FY24. HY24 saw sales rise 8.5% to $158 million, while the statutory net profit after tax (NPAT) grew by 16.7% to $20.7 million.

The company has demonstrated it can still grow earnings in this high-cost-of-living environment. It grew its interim dividend per share by almost 18% to 16.5 cents per share.

Estimates on Commsec suggest the business could pay a grossed-up dividend yield of 7.4% in FY25 and 8.3% in FY26.

Accent Group Ltd (ASX: AX1)

Created with Highcharts 11.4.3Accent Group PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Accent is another ASX retail share that sells a wide array of shoes from different brands. It acts as the distributor for a number of global brands, including CAT, Dr Martens, Henleys, Herschel, Hoka, Kappa, Merrell, Skechers, Ugg and Vans.

The company also has its own businesses, including The Athlete's Foot, Trybe, Stylerunner, Nude Lucy and Glue Store.

Accent continues to roll out new stores, which increases its potential earning power, particularly when retail conditions rebound in the next couple of years.

Everyone needs shoes, so Australia's growing population is a useful tailwind for this ASX dividend share.

The current forecast on Commsec suggests Accent shares could have a grossed-up dividend yield of 8.3% in FY25 and 10.3% in FY26.  

GQG Partners Inc (ASX: GQG)

Created with Highcharts 11.4.3Gqg Partners PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

GQG is a US-headquartered fund manager that provides a number of different investment funds for people including US shares, global and international shares, and emerging markets.

Its funds under management (FUM) is growing from a combination of pleasing long-term investment performance and regular net inflows of more investor money.

The business has committed to a dividend payout ratio of 90% of distributable earnings, leading to a pleasing quarterly dividend.

The estimate on Commsec suggests it could pay a dividend yield of 9% in FY25.

Motley Fool contributor Tristan Harrison has positions in Accent Group. 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 Scott Phillips.

More on Dividend Investing

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

Buy these excellent ASX dividend stocks for a big income boost

Brokers think these stocks could be top picks for income investors.

Read more »

A smartly-dressed businesswoman walks outside while making a trade on her mobile phone.
Dividend Investing

Here's the Telstra dividend forecast through to 2028

Let's see where the telco giant's dividend could be heading.

Read more »

Woman smiling with her hands behind her back on her couch, symbolising passive income.
Dividend Investing

My ASX share portfolio's yield is 1.8%. Here's why I'm ok with that

A small dividend yield is not a bad thing.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Dividend Investing

Brokers name the ASX dividend shares to buy in June

Let's see what they are saying about these shares.

Read more »

Married elderly man and woman in love spending time together on bench on a phone, symbolising retirement.
Dividend Investing

Why I think these 2 ASX dividend stocks are top buys for retirees

These stocks offer investors a pleasing level of resilience and dividends.

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
Dividend Investing

3 growing ASX dividend stocks to buy now

Analysts are expecting these stock to paying growing dividends.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

Where I'd invest $5,000 into ASX dividend shares right now

These two stocks look irresistible to me.

Read more »

Smiling business woman calculates tax at desk in office.
Dividend Investing

Turn tax return into passive income with these ASX dividend shares

These options can bring solid returns through passive income. 

Read more »