There is a wide range of ASX dividend stocks, from blue chips to ASX growth stocks that pay solid dividends.
I think some names are small enough to have a broad growth streak, but are already profitable enough to pay good dividends.
In my opinion, companies that grow at a good pace are the ones that can deliver the best returns over time through capitalization.
With that in mind, here are three of my top ASX dividend stock ideas to achieve growth at current prices.
Premier Investments Limited (ASX:PMV)
Premier Investments is in my opinion one of the most compelling retailers on the ASX. It’s packed with brands you’d find in an Australian Westfield mall, such as Just Jeans, Jay Jays and Peter Alexander.
But, there are two parts of Premier Investments that particularly appeal to me – Smiggle and Breville Group Ltd. (ASX:BRG). Smiggle is a school-focused retailer that sells a variety of branded products like bags, pencil cases, and more. Products have branded images from some of the most popular brands including Marvel and Minecraft.
Management is pleased with Smiggle’s performance since the COVID reopening. It is looking to expand into regions like Europe and Asia. The company seeks to “maximize EBIT (earnings before interest and tax) growth”.
It owns 25.6% of Breville, a growing global kitchen appliance company. Although this is not an article about Breville, I think this company is doing well in growing its global addressable market and expanding into new countries.
Premier retail sales were up 42.8% year over year in the first 12 weeks of FY23.
The ASX dividend stock is expected to pay a premium dividend yield of 5.8% in FY23.
Universal Store Holdings Ltd (ASX:UNI)
Universal Store has a “portfolio of high-end youth fashion brands”, which it can sell through its retail, online and wholesale stores. She owns the businesses Universal Store and THRILLS, while testing the Perfect Stranger brand as a standalone retail concept.
It continues to open new stores. Universal Stores recently said it plans to open two new stores before Christmas, along with four to five more stores in the second half of FY23.
In FY23 for the 21 weeks to November 20, 2022, total group sales (excluding THRILLS) increased by around 40%, while showing an improvement in gross margin.
The company expects favorable business conditions to continue in the post-lockdown environment.
Using estimates on Commsec, Universal Store’s stock price is valued at 11 times estimated FY24 earnings with a potential bonus dividend yield of 8.4%.
Beacon Lighting Group Ltd (ASX:BLX)
Beacon Lighting may not seem like a company with a lot of growth potential, but I think so, especially at this starting point of valuation where Beacon Lighting’s stock price is down 30% since the start of the year.
The short term could be a bit volatile with a possible slowdown in housing construction in Australia amid rising interest rates.
Beacon Lighting ended fiscal 22 with 117 corporate stores and two franchise stores. The company’s research identified the potential for 184 Beacon Lighting stores in Australia. This suggests a possible upside of more than 50%.
It seeks to increase commercial sales. Fiscal 22 saw Beacon commercial sales increase 15.8%. Trade club membership increased from 7,800 to 52,000 members. It acquires new trading products to create a complete range of products for its professional customers.
Dividend stock ASX has launched a Beacon Lighting business-to-consumer website in the United States to establish a market presence in the United States. Beacon Lighting USA saw FY22 sales increase 51.9%, but from a relatively small base.
Beacon’s FY22 international sales increased 27.9% to $15.7 million. It has established a new online ceiling fan sales channel in China with Tmall Global. The company expects continued expansion of Australian-designed products into markets in the United States, China, Asia and Europe.
According to Commsec, Beacon Lighting’s stock price is valued at 13 times estimated FY23 earnings with a potential dividend yield boost of 5.9% for FY23.
. think stock dividend ASX have potential growth supercharged