2 Undervalued ASX Dividend Shares Delivering Huge Profits
The nature of equity markets is that great businesses sometimes trade at cheap valuations and when that happens investors get rare chances to buy quality stocks at a discount and these two stocks fit that description perfectly.
Coles Group Limited (ASX: COL)
has put up a good performance in the first quarter of FY26 as its supermarket division continued to show growth across both offline and online channels.
Group sales revenue rose by 3.9% to $10.96 billion driven by a 4.8% lift in supermarket sales while liquor sales softened slightly as consumers stayed cautious with spending.
The company’s eCommerce arm remained a key growth driver with online supermarket sales up 27.9% and digital penetration climbing to 13.3% supported by new app features faster checkouts and same-day delivery in Melbourne.
Coles has been focused on expansion of everyday low-price ranges which helps maintain customer loyalty during a competitive retail period.
The company continues to invest in supply chain and automation projects including the new Truganina distribution centre and Coles currently offers a 3.14% annual yield supported by consistent performance and execution.
WCM Global Growth Limited (ASX: WQG)
has reported another year of great performance as net profit after tax rose to $69.5 million from $45.3 million a year earlier driven by higher investment income and portfolio gains.
The company’s portfolio returned 31% in FY2025 outperforming the MSCI All-Country World Index ex-Australia by more than 12 percentage points and since inception, WQG has delivered annualised returns of 16.7% which is very impressive.
WQG also raised about $76.7 million through a placement and share purchase plan which expanded its asset base to $462 million improving liquidity and scale.
The dividend policy remains progressive with the fully franked final FY2025 dividend raised to 2.06 cents per share which translates to a 3.75% current annual yield.
(Source: Company Reports)
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