UBS forecasts strong dividend growth from Accent Group Ltd (ASX: AX1) over the next four years. The ASX dividend share may deliver one of the largest yields on the market by FY28.
Footwear and Apparel Retailer Builds Payout Record
Accent Group operates a retail network focused on footwear and apparel. Its owned brands include The Athlete’s Foot, Stylerunner, Platypus, Glue Store and Nude Lucy. The company also retails global brands such as Skechers, Vans, Hoka, Dr Martens, Herschel, Ugg and Saucony.
Accent has consistently delivered strong dividends in recent years. UBS expects this trend to continue based on projected growth and valuation metrics.
UBS Sees Dividend Rising to 13 Cents by FY28
UBS estimates Accent’s dividend will rise from 9 cents per share in FY25 to 13 cents per share by FY28. This would translate to a grossed-up dividend yield of 10% at current share prices. The yield includes franking credits and reflects the business’s consistent income model.
This level of projected return compares favourably with the Australian share market’s long-term annual average of around 10%. Investors may see this yield as attractive given current market volatility.
Low P/E Ratio Supports High Yield
Accent currently trades at about 13 times UBS’s forecast earnings for FY25. This relatively low P/E ratio supports an above-average dividend yield.
UBS expects a 36% increase in earnings per share between FY25 and FY28. That would provide strong support for dividend growth and capital appreciation.
The valuation implies that Accent remains reasonably priced despite its strong performance outlook and dividend profile.
Store Network Expansion Remains Key Growth Driver
UBS highlighted store network growth as a key driver of future earnings. The broker expects stronger expansion in FY26 than in FY25. Store refurbishments may also increase, contributing further to sales growth.
UBS said: “A tighter network of retail banners, including Hype DC, TAF, Stylerunner & Nude Lucy and a strong portfolio of vertical brands (HOKA especially, Vans back into growth), provide multiple sources of sales growth.”
The company’s focus on targeted brand expansion may enhance margins and improve product availability in high-demand regions.
New Brand Partnerships Set to Boost Revenue
Accent will begin partnerships with Dickies and Lacoste from FY26. These additions are expected to contribute to revenue in coming years.
The company has also formed a partnership with Frasers Group, which owns several global sports and fashion brands.
Accent will launch Sports Direct stores in Australia and New Zealand through this partnership. Plans include at least 50 stores within 25 years, with potential to reach over 100.
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Access to Global Brands Enhances Sales Potential
Accent’s partnership with Frasers allows access to brands including Everlast, Lonsdale, Slazenger, Karrimor, USA Pro and Hot Tuna. These brands will feature in Sports Direct stores and other Accent retail outlets.
The expansion of product offerings aligns with Accent’s multi-brand strategy and diversified retail model.
Broader brand access will provide new revenue opportunities and attract a wider customer base across regions.
Dividend Growth Reflects Business Expansion and Earnings Strength
UBS expects the projected dividend to reflect both strong earnings and network growth. The outlook suggests that Accent will remain a prominent ASX dividend share.
At a 10% grossed-up yield, the company could deliver long-term income in line with market historical returns. Earnings growth may also support capital gains alongside rising dividends.
Accent Positioned for Long-Term Shareholder Returns
Accent’s dividend profile, earnings outlook and retail expansion place it among high-yield ASX shares. The combination of brand partnerships, network growth and product diversification offers multiple revenue channels.
UBS projects steady financial growth and sustainable dividends through FY28. The ASX dividend share may offer compelling returns through both income and capital growth.
As the business evolves and partnerships expand, Accent appears well-positioned to continue rewarding shareholders.
