Image Source: Getty Images
In this era of record low interest rates, finding income options can be difficult. ASX dividend stocks may be a good way to generate the cash flow you need.
Companies can pay investors a portion of the profits they earn each year.
However, just because a company pays dividends or distributions does not mean that it automatically makes a purchase.
But it may be good to think about these two ASX dividend stocks.
According to Commsec’s 2010 estimate, Adairs’ forward gross-up dividend yield is 8%. This is based on an annual dividend of approximately $ 0.22 per share.
Adairs is a leading retailer of household goods and furniture. It has a large store network that spans Australia and New Zealand and a large online presence. The company sold 37.4% of its total sales online. The company’s total sales increased 28.5% to $ 500 million.
The company’s profitability improved significantly in FY2009, with the Group’s underlying interest and pre-tax profit (EBIT) increasing 98.2% to $ 96.7 million. Part of this growth was due to an increase in the underlying gross margin of 520 basis points to 66.7%.
But it aims to keep increasing profits. The supply chain is an important focus, and this month (September 2021), a new national distribution center operated by DHL will be operational. This should save about $ 3.5 million annually.
Expanding store floor space could be another area of growth. According to ASX’s dividend share, store sales are highly correlated with store floor space, with each additional square meter increasing store sales by approximately $ 4,000. The total leasable area (GLA) is expected to increase by 8% (or more) in FY2010 and by 5% (or more) through new and large stores over the next five years.
Adair’s share price is estimated to be 11 times the estimated earnings in 2010.
Ingams is one of Australia’s largest poultry businesses. We offer chicken, turkey and plant-based protein products. The poultry business has many customers, including major retailers, quick service (fast food) restaurants, food service distributors and wholesalers.
According to management, a vertically integrated operating model of ASX dividend share allows companies to create value and achieve efficiency across complex and large supply chains.
Ingams saw the 21st statutory Interest, taxes, depreciation and profit before depreciation (EBITDA) It increased by 14.5% to $ 443.9 million. Meanwhile, statutory net income was up 107.7% to $ 83.3 million. This allowed the company to increase its total dividend by 17.9% to 16.5 cents per share.
Commsec estimates that Inghams will pay a total dividend yield of 6.4% in 2010.
Ingams aims to pay shareholders credible dividends, with dividend payment rates ranging from 60% to 80% of the underlying net income after tax. It focuses on revenue growth and the “benefits of continuous improvement”.
Sales volume is expected to increase due to new businesses across various channels. We aim to secure growth opportunities by innovating existing customers and products.
Inghams invests in its entire network to improve and grow its business, including WA hatcheries and system modernization projects.
Citi is currently evaluating Ingam as a purchase with a price target of $ 4.55. Using the broker’s forecast, Inghams is valued at 16 times the estimated revenue of FY22.
Two Top ASX Dividend Stocks Thinking About September 19, 2021
Source link Two Top ASX Dividend Stocks Thinking About September 19, 2021