Investors in the Australian share market are evaluating potential dividend stocks as September 2023 progresses. Analysts have identified three companies that stand out for their strong dividend prospects and market resilience: Coles Group Ltd, Accent Group Ltd, and Treasury Wine Estates Ltd.
Coles Group Ltd: A Reliable Dividend Performer
As one of Australia’s leading supermarket chains, Coles Group Ltd (ASX: COL) represents a solid choice for income-focused investors. The company benefits from stable earnings driven by the constant demand for groceries, regardless of economic conditions. This stability has enabled Coles to maintain consistent dividend payments, even during challenging periods, such as the recent pandemic.
Despite tight margins in the retail sector, Coles is enhancing its supply chain efficiency through automation. This strategic focus helps safeguard profitability while providing fully franked dividends to its shareholders. Analysts at Macquarie have an outperform rating on Coles, with a target price of $25.40 per share. They project fully franked dividends of 77 cents per share for FY 2026, followed by 84 cents in FY 2027, resulting in estimated dividend yields of 3.2% and 3.5%, respectively, based on the current share price of $23.96.
Accent Group Ltd: Adapting to Market Changes
The Accent Group Ltd (ASX: AX1) has established itself as an adept dividend payer, owning popular footwear brands such as Platypus and Hype DC. The company also holds exclusive distribution rights for several major global brands. Its capital-light business model allows for substantial returns to shareholders through fully franked dividends.
Accent has demonstrated resilience in a competitive retail landscape by quickly adapting to consumer trends and balancing online and in-store sales. The positive outlook from Bell Potter includes a buy rating and a target price of $1.80 per share. They anticipate fully franked dividends of 7.8 cents per share in FY 2026 and 9.2 cents in FY 2027, translating to dividend yields of 5.7% and 6.75%, respectively, based on the current share price of $1.36.
Treasury Wine Estates Ltd: Focused on Premiumization
Another notable player is Treasury Wine Estates Ltd (ASX: TWE), which ranks among the world’s largest wine companies. With a portfolio featuring premium brands such as Penfolds and Wolf Blass, Treasury benefits from its international reach, particularly in Asian and American markets where demand for luxury wines is rising.
Although the company has faced challenges recently, it has strategically repositioned itself towards premiumization, enhancing margins and strengthening cash flows. The outlook remains optimistic, with Morgans providing a buy rating and a target price of $10.10 per share. They project partially franked dividends of 41 cents per share for FY 2026 and 46 cents for FY 2027, which would result in estimated dividend yields of 5.25% and 5.9%, respectively, based on the current share price of $7.79.
In summary, Coles Group, Accent Group, and Treasury Wine Estates offer compelling dividend opportunities for investors looking to bolster their portfolios this September. Each company showcases unique strengths that position them well for continued success in the competitive Australian market.
