ASX dividend shares offering enormous yields could be exciting investments because of the potential to deliver both dividends and share price growth.
Sometimes resource businesses offer huge yields, but that can quickly disappear. The two ideas I’m about to cover could keep paying good dividend income in 2024 and over the long-term.
GQG Partners Inc (ASX: GQG)
GQG Partners Inc (ASX: GQG) is one of the few listed fund managers that is seeing solid funds under management (FUM) inflows. FUM describes how much money the fund manager is looking after, and inflows says that people are depositing money for the manager to invest.
If the investment funds produce positive returns, then net inflows are a strong bonus for FUM and earnings growth.
In the September 2023 quarter, GQG saw net inflows of US$1.8 billion and in 2023 to September 2023 it has seen US$8.1 billion of net inflows. Most of the company’s profit is generated from management fees rather than performance fees, so FUM growth should unlock more profit growth.
The ASX dividend share plans to pay out 90% of its distributable earnings to investors. The estimate on CMC Markets suggests that it could pay an annual dividend per share of $0.155 in 2024, which would be a dividend yield of 11%.
Accent Group Ltd (ASX: AX1)
Accent Group Ltd (ASX: AX1) is an ASX dividend share and a shoe retailer that sells through some brands that it owns including Nude Lucy, The Athlete’s Foot and Glue Store. It also acts as the distributor for some international brands like Skechers, Vans and Kappa.
It has an impressive history of increasing its dividend most years and I believe it can keep growing its dividend in the years to come as it rolls out more stores and perhaps builds out its brand portfolio to even more names.
In the 2023 financial year it added 80 stores to reach 821 stores. These 80 new stores will be able to contribute a full 12 months of earnings in FY24. Accent is also expecting profit margin improvement in FY24.
The estimate on CMC Markets implies a fully franked dividend yield of 6.5%, or 9.3% including the bonus of the franking credits.
