Top 10 ASX Dividend Stocks Heading into 2025

7. Premier Investments Limited (PMV.AX)

Dividend Yield as of December 25: 4.09%

Premier Investments Limited (PMV.AX) ranks seventh on our list of the best ASX dividend stocks. The company is mainly engaged in retail and investment activities. The company owns the Peter Alexander and Smiggle brands, which analysts believe have significant potential for long-term growth. They are also optimistic about the proposed sale of the company’s non-core brands.

Bell Potter, a prominent Australian stockbroking firm, noted that Premier Investments Limited (PMV.AX) holds around 6% market share in the Australian apparel sector and about 15% in the stationery market. In addition, Smiggle is a major player in the UK market. With plans to expand Smiggle’s presence in the Middle East and Indonesia through a low-risk wholesale model, along with Peter Alexander’s expansion into the UK, both brands are seen as having considerable growth opportunities ahead. The stock has surged by nearly 19% in the past 12 months.

In its earnings report, Premier Investments Limited (PMV.AX) highlighted that FY24 proved to be another challenging year for discretionary retail. Despite the difficult market conditions, the company achieved global sales of $1.6 billion, reflecting a 25.5% increase compared to pre-COVID FY19 levels. The company also posted a strong EBIT result of $325.9 million, driven by effective management of gross margins and operational costs. In August 2023, the Premier Board initiated a strategic review of Premier Retail, recognizing significant growth opportunities for Peter Alexander, Smiggle, and the Apparel Brands. In June 2024, the Board concluded that the proposed merger of the Apparel Brands business with Myer warranted further evaluation, and extensive work has been carried out to analyze this proposal.

Premier Investments Limited (PMV.AX) declared a record final fully franked ordinary dividend of $0.70 per share, marking a 16.7% increase or an additional 10 cents per share compared to the FY23 ordinary dividend. This brings the total fully franked ordinary dividend for FY24 to $0.133 per share. As of December 25, the stock supports a dividend yield of 4.09%.