Top 10 ASX Dividend Stocks Heading into 2025

6. Super Retail Group Limited (SUL.AX)

Dividend Yield as of December 25: 4.40%

Super Retail Group Limited (SUL.AX) is an Australian retail company that operates a range of well-known brands across different sectors, including outdoor recreation, sports, and auto parts. Analysts consider the stock attractive due to its low valuation and the potential for increased sales and productivity. They pointed out that Super Retail Group is one of the few retailers in Australia with both space and sales productivity levers, which they expect the company to effectively utilize.

Super Retail Group Limited (SUL.AX) celebrated its 20th anniversary as a public company in the 2024 financial year, marking the occasion with the opening of its 750th store, another record sales performance, and total annual shareholder returns (including dividends) of 30%. Despite persistently high inflation and escalating cost-of-living pressures that influenced consumer shopping priorities, particularly regarding discretionary purchases, the company navigated the challenging macroeconomic environment successfully. In addition, it delivered strong financial results, with higher sales and gross margins, demonstrating the resilience and adaptability of its Supercheap Auto, rebel, BCF, and Macpac brands. Total sales for FY24 rose by 2% to $3.9 billion, driven by network expansion and continued strong growth in online sales.

Super Retail Group Limited (SUL.AX) also showed a strong cash position in FY24. The company ended the year with a net cash position of $218 million, compared with $192 million in the same period last year. Its operating cash flow for the year came in at $635 million. Moreover, cash receipts from customers rose by $91 million due to increased sales.

In its earnings call, Super Retail Group Limited (SUL.AX) announced that the board decided to pay a fully franked final ordinary dividend of $0.37 per share, which is near the top end of the company’s dividend payout policy. In addition to this, shareholders will receive a fully franked special dividend of $0.50 per share. Along with the interim ordinary dividend of $0.32 per share, shareholders will receive total dividends of $0.119 per share for FY24. With a dividend yield of 4.40% as of December 25, SUL is one of the best dividend stocks on our list.