Shaver Shop Group Ltd (ASX: SSG), a prominent retailer in the personal grooming sector, is projected to offer a dividend yield of approximately 10.3% in 2025. This forecast positions the company as an attractive option for investors seeking passive income. The retailer specializes in hair removal products, including electric shavers, clippers, and other grooming essentials, with a network of 124 stores across Australia and New Zealand.
With an aim to dominate the personal grooming market, Shaver Shop also provides a variety of items in categories such as oral care, hair care, and beauty. Its online presence extends beyond its direct websites, reaching platforms like eBay, Amazon, and TradeMe, enhancing its market competitiveness. This broad approach allows the company to secure exclusive products from suppliers, further strengthening its position.
Consistent Dividend Growth Signals Strong Future
Shaver Shop has demonstrated a robust track record in increasing its annual dividend per share since 2017. Although the company maintained its dividend in 2024, it raised the payout in FY25 by 0.1 cents, bringing the annual dividend to 10.3 cents per share. This increase translates into a grossed-up yield of 10.3%, inclusive of franking credits, positioning Shaver Shop competitively against the S&P/ASX 200 Index (ASX: XJO).
Analysts suggest that Shaver Shop could increase its annual payout to at least 10.4 cents in FY26. This optimism is backed by the company’s earnings per share (EPS) of 11.5 cents and cash EPS of 12.1 cents reported in FY25. Given these figures, the potential for profit and dividend growth appears promising.
Positive Sales Growth and Expansion Plans
In the early weeks of FY26, Shaver Shop reported total sales growth of 2.7%, with a like-for-like sales increase of 1.5%. Such growth is critical as it directly influences net profit margins. The company also noted an improved gross profit margin compared to the same period last year, partly due to the successful introduction of its private brand, Transform-U.
Furthermore, Shaver Shop is planning to expand its footprint by opening two new stores in the first half of FY26, with additional locations slated for the latter half. These strategic expansions, along with plans to refit and relocate existing stores, are expected to bolster the company’s market presence and revenue potential.
In summary, Shaver Shop Group Ltd presents a compelling investment opportunity with its strong dividend yield and growth prospects. As it continues to expand and enhance its product offerings, the company aims to secure its position as a leader in the personal grooming industry, making it a noteworthy consideration for investors looking for reliable income streams.
