UPDATE: Three ASX shares have been identified as top buys for both growth and dividends, offering investors a dual benefit of capital appreciation and passive income. This urgent news comes as the retail sector showcases promising performance, with significant sales growth reported across key players.
JB Hi-Fi Ltd (ASX: JBH) is leading the pack, with a strong first quarter for FY26. Sales in Australia surged by 6%, while its New Zealand operations experienced an incredible 39.3% increase. The company’s profitability is anticipated to rise to $497 million, bolstered by a projected dividend of $3.40 per share. This positions JB Hi-Fi with a grossed-up dividend yield of 5%, making it a compelling option for investors seeking both stability and growth.
Meanwhile, Lovisa Holdings Ltd (ASX: LOV) continues to capture the market’s attention. The affordable jewelry retailer reported a stunning 26.2% increase in total sales for the first 20 weeks of FY26, alongside 3.5% growth in comparable store sales. Analysts at UBS value Lovisa at 33x FY26 estimated earnings, with dividends expected to rise to 88 cents per share, translating into an appealing yield nearing 3%.
Lastly, Premier Investments Ltd (ASX: PMV), owner of popular brands like Peter Alexander and Smiggle, is also in the spotlight. Despite recent challenges for Smiggle, the company announced a 7.7% sales growth for Peter Alexander in FY25, with further expansion planned in the UK. UBS forecasts a value of 15x FY26 earnings for Premier Investments, with a potential grossed-up dividend yield of 6.2%.
Investors are encouraged to act swiftly, as these opportunities may not last. The retail sector’s resilience and growth potential make these stocks particularly attractive in today’s market.
Stay tuned for further updates on these stocks and others as the ASX landscape evolves!
