Top 10 ASX Dividend Stocks Heading into 2025

5. Nick Scali Limited (NCK.AX)

Dividend Yield as of December 25: 4.50%

Nick Scali Limited (NCK.AX) is a retailer that specializes in premium furniture. It designs, imports, and sells a wide range of high-quality furniture, including sofas, chairs, tables, and home décor items. The company, established more than 60 years ago, has grown into one of Australia’s largest retailers and importers of high-quality furniture. The company remains committed to expanding its success while honoring the legacy of its founder. Each year, Nick Scali Furniture imports over 5,000 containers of premium leather and fabric lounges, along with dining and occasional furniture. In the past 12 months, the stock has delivered a 23% return to shareholders.

In FY24, Nick Scali Limited (NCK.AX) reported strong earnings. The company’s revenue of A$468.2 million, down 7.8% from the same period last year. However, Australian and New Zealand (ANZ) written sales orders totaled $447.4 million, reflecting a 2.4% increase compared to FY23. The gross margin for the ANZ region reached 66.0%, which was a 2.5% improvement over the previous year. The company also completed the acquisition of Fabb Furniture in the UK on May 8. This acquisition resulted in the addition of 20 stores to the company’s network. As of June 30, 2024, cash and bank deposits amounted to $111.3 million.

As a dividend payer, Nick Scali Limited (NCK.AX) has a solid cash position. In FY24, the company generated $87.1 million in cash from operating activities, after accounting for operating lease and interest payments, compared to $89.8 million in FY23. Property and other capital investments totaled $28.1 million, up from $12.9 million in FY23. This included $16.6 million for construction and $2.4 million for the fit-out of a new distribution center in Queensland. The directors declared a fully franked final dividend of $0.33 per share. Including the interim dividend, this results in a payout ratio of 69% for FY24, compared to 60% in FY23.

Nick Scali Limited (NCK.AX) is one of the best dividend stocks on our list as the stock supports a dividend yield of 4.50%, as of December 25.