Super Retail Group Forecasted to Deliver Strong Dividends

Highlights:

• Citi Buy Rating: Super Retail Group Ltd (ASX: SUL) has been given a "buy" rating by Citi analysts with a price target of $20.00 per share.
• Strong Dividend Yields: The company is projected to offer fully franked dividends of $1.23 per share in FY 2025 and $1.31 per share in FY 2026, leading to attractive yields of 6.75% and 7.2%, respectively.
• Strategic Financial Position: Super Retail's significant cash reserves and ongoing consumer demand across its key brands (BCF, Macpac, Rebel, and Super Cheap Auto) reinforce its ability to maintain growth and pay strong dividends.

Positive Analyst Outlook

Super Retail Group Ltd (ASX: SUL), the parent company of well-known brands such as BCF, Macpac, Rebel, and Super Cheap Auto, has caught the attention of analysts at Citi. The firm has rated Super Retail as a "buy," setting a price target of $20.00 per share. This positive sentiment stems from the group's solid financial position and expected future growth in dividends.

Strong Dividend Projections

Citi's analysts project that Super Retail will continue paying special dividends in both FY 2025 and FY 2026. With its substantial cash reserves, the company is expected to distribute fully franked dividends of $1.23 per share in FY 2025, followed by $1.31 per share in FY 2026. Based on the current share price of $18.23, these payouts would result in attractive dividend yields of 6.75% and 7.2%, respectively, appealing to income-focused investors.

Why Super Retail Remains a Solid Investment

Super Retail's robust performance across its brands has driven strong financial results. With continued consumer demand for outdoor, sporting, and auto products, the company remains well-positioned to benefit from both organic growth and strategic expansion. As its balance sheet strengthens, Super Retail's ability to reward shareholders with high dividend payouts further reinforces its status as a strong dividend stock on the ASX.

Conclusion

With Citi analysts backing Super Retail Group (ASX: SUL) for future growth and attractive dividends, investors may find it a compelling opportunity. Its blend of consistent performance, high dividend yields, and market-leading brands solidify its position as a valuable addition to any portfolio.

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