Higher Yield Makes This ASX Stock Attractive for Passive Income Seekers
Shaver Shop Group is projected to deliver an 11 percent yield by 2027 as the company intends to lift its payout accompanied by steady growth.
Shaver Shop Group Limited (ASX: SSG)
is becoming one of the top personal grooming retailers across Australia and New Zealand as the company is well known for premium grooming appliances and exclusive distribution agreements that puts it in a great position in an expanding personal care market.
Total sales were flat at $218.6 million in FY25 but the company managed to hit a record gross margin of 45.5% which grew by 1.1% from last year mainly because of better pricing, category management and contribution from its exclusive brands.
EBIT went up by 2.4% to $22.5 million and NPAT was $14.9 million while operating cash flow stayed healthy at $23.6 million and SSG finished the year with $3.9 million net cash, no borrowings at all and still had $30 million in undrawn debt facilities.
Online sales formed about 23% of total sales and came back to growth in the second half showing good momentum going into FY26.
Shaver Shop has been paying dividends for several years and it has increased its dividend every year since 2017 except for FY24.
Fully franked Dividends for FY25 stood at 10.3 cents per share which translates to a current annual yield of 6.89% making it one of the best picks in the retail space.
The board now expects future dividends to be around 65 to 90 percent of underlying NPAT which is a shift from earlier policy of 60% to 80% of cash NPAT and this will lead to a rise in dividends making it an attractive passive income stock.
The dividend yield should rise in future and if it doesn’t, it simply means the share price has gone up instead which makes it a win-win situation for investors.
The company is also getting benefits from the rise of DIY grooming and premium personal care appliances and going into FY26, SSG stands with a proven business model, a debt free balance sheet and a good presence across online and offline platforms.
(Source: Company Reports)
Get Your Free Report on Top 5 ASX Stocks on WhatsApp
Instant Access. No Credit Card Required.
Receive on WhatsApp
Checkout Our Recommendation for free - 7 days free trial
Start Free TrialASX Stock Research & Recommendations — 7‑day free trial
Independent, analyst‑driven insights.
- Stock of the week report
- Daily Analysis Report
- No credit card required
Get Your FREE Report
Discover the Top ASX Stocks to Invest In 2026!
Expert Analysis of Top-Performing ASX Stocks
Market Insights and In-Depth Research
Buy, Sell, And Hold Recommendations
Almost There!
Enter your details to download the report
Success!
Preparing your download...
Latest Article
Disclaimer
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.
