The ASX stock Shaver Shop Group Ltd (ASX: SSG) may not seem like a leading choice for passive income, but I’m going to show why the business should be seen as an attractive dark horse for dividends.
It has a large dividend yield and a track record for increasing payouts, which is rare for an ASX retail share.
The business could provide an investor with an annual income of $1,000 or more with a large enough investment. Let’s look at the income potential of one of the leading Australian retailers of shaving products.
Great dividend potential
Pleasingly, the business has never given investors an annual dividend cut, which is a very pleasing record of consistency.
In fact, since it started paying a dividend in FY17, FY24 was the only year that it didn’t increase its payout (so far).
Its latest two declared half-year dividends came to 10.3 cents per share, which currently translates into a grossed-up dividend yield of 10.3%, including franking credits, at the time of writing.
In the FY26 half-year result, the business decided to maintain its interim dividend at 4.8 cents per share.
If the business maintained its payout in FY26 at 10.3 cents per share, it would be a great result for shareholders because that would still represent a double-digit dividend yield, including franking credits.
Making $100 per month of passive income
The business doesn’t pay a dividend every month, so we can think of the goal as an annual total and then divide that by 12.
$100 per month would translate into an annual total of $1,200.
To receive $1,200 (excluding franking credits) with an annual dividend per share of 10.3 cents, an investor would need 11,651 shares of the ASX stock.
Why it could be a good ASX stock investment for the long-term
The business has built up an impressive position and continues to grow.
Despite the challenging trading conditions, in the first six months of FY26, total sales grew 2.2% to $128.6 million, operating profit (EBIT) increased 2.5% to $18.1 million and net profit grew 1.5% to $12.2 million.
Total sales growth started strongly in the second half of FY26 to 22 February 2026, with overall growth of 3.8% and online sales growth of 12.7%.
I’m expecting the ASX stock to grow its bottom line and profit margins thanks to a slowly growing store count, more online sales, exclusive products with certain brands and growing its own Transform-U brand.
According to the projection on CMC Invest, the Shaver Shop share price is valued at just 12x FY26’s estimated earnings.
The post I’d buy 11,651 shares of this ASX stock to aim for $100 a month of passive income appeared first on The Motley Fool Australia.
Should you invest $1,000 in Shaver Shop Group right now?
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Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Shaver Shop Group wasn’t one of them.
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* Returns as of 20 Feb 2026
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.