The ASX income stock Accent Group Ltd (ASX: AX1) recently reported its result, which included a number of positives. However, there was one major issue for dividend investors â the passive income payment was cut. The shoe retailing business has paid investors significant passive income over the past decade, but I think this recent reduction could make the business more appealing.
The overall offering of the company as an investment looks good to me too.Accent acts as a local distributor for a number of global retailers, including UGG, Skechers, VANS, Herschel, Hoka, and Merrell. It also has a number of other businesses, including The Athlete's Foot, Nudy Lucy, Stylerunner, Platypus, Hype, and a few others.
I often say that investing in ASX dividend shares isn't just about the dividends. Below are the reasons why I like this ASX income stock.Solid financial resultsAccent reported that in the first six months of FY25, its group sales (including franchisees) grew by 4.
2% to $844.6 million. I think top-line growth is important, at least in line with inflation, because it indicates the company continues to scale and shows it's maintaining (or growing) its market share.
Even more important than that, Accent grew profit at a faster rate. Profit generation is important for the valuation and paying the dividend. Operating leverage is also useful because it indicates the business can become even more profitable as it becomes larger.
Operating profit (EBIT) grew 11.5% to $80.6 millio.
