Super Retail Group vs Wesfarmers shares: Which dividend stock is better right now?

Everyday investors weighing up Super Retail Group Ltd (ASX: SUL) and Wesfarmers Ltd (ASX: WES) shares could find themselves facing a classic income-versus-stability puzzle. Both companies are big names on the ASX, offer strong brands, and pay fully franked dividends. But there are major differences in size, recent performance, and dividend yield. So, which of these consumer stocks deserves a spot in a dividend-hunter’s portfolio right now?

The case for Super Retail Group

Super Retail Group operates some of Australia and New Zealand’s most recognisable retail brands, including Supercheap Auto, Rebel, BCF, and Macpac. It’s a go-to retailer for auto parts, sporting goods, and camping and outdoor gear. According to its most recent public description, the group oversees more than 700 stores, plus online stores, and sources products internationally. Supercheap Auto alone brings in the largest slice of sales revenue.

Three stand-out fundamentals grab my attention. First, Super Retail Group’s fully franked dividend yield comes in at a hefty 5.28%, based on current data. Second, its P/E ratio is 13.59, suggesting a much lower valuation than Wesfarmers, at least on current earnings. Third, despite a steady dividend record, its shares have been under pressure, sporting a year-to-date return of -19.2% as of the latest figures.

On the dividend front, Super Retail Group has shown a long history of consistent, fully franked dividends, with regular interim and final payouts, plus some special dividends in recent years. The latest annual dividend was 65 cents per share, again fully franked.

The case for Wesfarmers

Wesfarmers is one of Australia’s largest conglomerates, with operations spread across retail (Bunnings, Kmart, Officeworks, Priceline), chemicals, energy, and fertilisers, among other sectors. It’s a diversified powerhouse that brings the kind of stability you’d expect from a business with more than a century of history and a mix of non-retail exposure.

If I zero in on fundamentals, Wesfarmers’ market cap is huge at $83.73 billion, reflecting its scale and diversification. Its fully franked dividend yield is 3.03%—lower than Super Retail Group, but still respectable for a blue chip name. The P/E ratio is 28.93, which is more than twice that of Super Retail Group, making it look much pricier if we compare purely on that basis. Its year-to-date return is -6.8%, meaning it’s held up better than Super Retail Group across recent volatility, though it’s still down for the year.

Dividend history is another positive. Wesfarmers has also maintained a steady rhythm of fully franked dividends, including interim and final payments, with some occasional specials.

Valuation comparison

Here’s how some key metrics stack up:

Metric	Super Retail Group	Wesfarmers
P/E Ratio	13.59	28.93
Dividend Yield	5.28%	3.03%
Dividend per Share	$0.65	$2.22
EPS	0.906	2.534
Franking	100%	100%
Market Cap	$2.81B	$83.73B

Wesfarmers’ P/E is notably higher than Super Retail Group’s P/E, meaning you’re paying a larger multiple for each dollar of earnings. As for dividends, Super Retail Group is hands-down ahead on headline yield, and both companies offer fully franked payouts.

Recent share price performance

Let’s look at how the shares have performed in the short term. Comparing the period until 23 September:

• Super Retail Group closed at $12.43, having shown some volatility and a year-to-date decline of -19.2%.
• Wesfarmers closed at $73.79, with less severe declines and a year-to-date return of -6.8%.

This suggests that while neither company has been immune from market volatility, Wesfarmers shares have been much more resilient in 2026 so far.

Which is the better buy?

If I had to pick a consumer stock for dividends right now, I’d lean toward Super Retail Group. Its forward dividend yield of 5.28%, fully franked, is a clear standout versus Wesfarmers’ 3.03%. The company has a consistent payout history—and while the recent price decline might feel uncomfortable, it’s exactly this weakness that’s pushed up the yield and left the stock trading on a much lower earnings multiple.

Of course, Wesfarmers offers scale, diversification, and stability that you just don’t get with a smaller, focused retailer like Super Retail Group. Its size might make it the steadier option for risk-averse investors and its business mix is broader, but if I’m focused on dividend income and value, Super Retail Group currently looks more appealing based on the fundamentals visible here.

That said, neither company has escaped this year’s broader market negativity, and anyone considering either name should be mindful of why sentiment has cooled. Still, right now, Super Retail Group’s high, fully franked dividend yield and modest P/E ratio tip the scales for me, as long as you’re comfortable with some short-term volatility.

The post Super Retail Group vs Wesfarmers: Dividend showdown for Aussie investors appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

If you are hunting for the winning combination of major upside and a generous dividend yield, then read on!

That’s because Bell Potter has just identified one ASX 200 share that offers both.

Which ASX 200 share?

The share that Bell Potter is recommending to clients is Premier Investments Ltd (ASX: PMV).

It is the owner of the Smiggle and Peter Alexander brands, as well as a sizeable stake in Breville Group Ltd (ASX: BRG).

Bell Potter notes that the company released its FY 2026 results this week, which were in line with expectations. 

The broker was also pleased to see Premier Investments have an encouraging start to FY 2027. It said:

Premier Investment’s FY26 result was in line with expectations, with Premier Retail EBIT (Pre-AASB 16 ex-Peter Alexander UK and other non-recurring items) of ~$176m pre-reported in Aug. The incremental update in the result was the early FY27 trading with global sales and gross profit $ (on a constant currency basis) for the first 7 weeks +1% on pcp. The Smiggle brand (~30% of Premier Retail) has commenced the key strategy reset in Aug with stores undergoing changes in the product range to reclaim the 6-12 year old customer demographic. 

For the key PA brand (~70% of Premier Retail), store upsizing opportunities were reiterated in addition to the return of the new store growth in FY27. The company reported a strong cash position of $391m, in addition to a lean inventory position of ~$97m ahead of the 2Q peak season’s trading.

Should you invest?

According to the note, Bell Potter has retained its buy rating on the ASX 200 share with a trimmed price target of $15.50 (from $16.50).

Based on its current share price of $11.95, this implies potential upside of 30% for investors over the next 12 months.

In addition, the broker is forecasting fully franked dividend yields of 7.1% in both FY 2027 and FY 2028. This boosts the total potential annual return to approximately 37%.

Commenting on the ASX 200 share, Bell Potter said:

Our target price is based on a sum-of-the-part valuation of the Premier Investments business with a 10x (prev. 11x) multiple for PA, 3x (prev. 4x) for Smiggle and a current market valuation for Breville Group (BRG). Our TP decreases ~6% to $15.50 (prev. $16.50) largely driven by the change in the market value of PMV’s holding in BRG. 

While we expect a period of slow growth for PMV near to medium term, we view PMV’s forward multiple as attractive considering the Premier Retail division together with PMV’s equity investments, land bank and cash position while retaining a strong balance sheet supportive of M&A. Our SOTP sees an attractive ~$1.6b EV for the key PA brand vs PMV’s $1.9b market capitalization.

The post This ASX 200 share offers 30% upside and a 7% yield appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Why are Premier Investments shares trading higher today?
• Premier Investments earnings: Net profit slips, dividend steady in FY26

Motley Fool contributor James Mickleboro 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 Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Deep Yellow Ltd (ASX: DYL) have fallen by more than a third over the past year, but the analysts at Morgans think it’s time to take another look at the company.

The broker has a speculative buy rating on Deep Yellow shares and a bullish price target, which I’ll get to shortly.

First let’s look at why they believe Deep Yellow could be in line for a rerating.

Deep Yellow’s major project heading in the right direction

Deep Yellow’s flagship project is the Tumas uranium project in Namibia, where the company is targeting a final investment decision in the fourth quarter of 2026.

The company in August announced it had secured a long-term water supply for the mine, as well as an agreement for Namibian private company Oponona to take a 5% stake in the project, in line with the Namibian Ministry of Mines and Energy’s requirements for supporting local ownership.

Regarding the recent updates, Deep Yellow Managing Director Greg Field said:

These milestones build on completed bulk earthworks, major civil and concrete works now underway, and continued progress across engineering, procurement, optimisation and financing. Tumas is becoming progressively more de-risked and construction-ready. We have real momentum and will continue systematically closing out the remaining workstreams as we build the strongest possible platform for a disciplined investment decision.

Deep Yellow shares looking cheap

In a research note to clients, Morgans said that since a previous decision to defer the project’s sanctioning, “uranium market conditions have improved materially, detailed engineering has advanced, key infrastructure agreements have been executed and project financing work has continued”.

Morgans added:

We believe Tumas is emerging as one of the more advanced undeveloped uranium projects globally, although funding, execution and contracting risks remain. With several important milestones now largely complete, we think investors should reacquaint themselves with the asset before the next phase of the story begins.

Morgans also said the decision to delay the project had “aged well”, with long-term uranium prices strengthening and contracting conditions more supportive of producers.

They added that Namibia was a tier-1 jurisdiction, the deposit was a well-understood style, and it had a long-life production profile which compared favourably with many undeveloped peers.

The broker also noted:

DYL offers leveraged exposure to a strengthening uranium market through its flagship Tumas Project. We believe the market is underappreciating the value of a development-ready uranium asset with significant leverage to improving industry fundamentals.

Morgans has a target price of $1.95 on Deep Yellow shares compared to the current price of $1.30.

Deep Yellow is valued at $1.32 billion.

The post This ASX uranium stock could rise 40%: Broker appeared first on The Motley Fool Australia.

More reading

• 4 ASX shares tipped by brokers to return 63% to 125%
• Deep Yellow delivers key Tumas milestones and secures project progress in Namibia

Motley Fool contributor Cameron England 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.