Ashley Services Group Ltd (ASX:ASH) dividend bonanza

Labour hire and training company Ashley Services announced a 3 cent interim dividend today, up 67% from 1.8 cents for the first half of last year. While the company has not provided profit guidance for the half, it is safe to assume the business is tracking well ahead of last year. The group is clearly benefiting from the tight labour market which will likely ease once borders reopen. 

However, the business has enjoyed steady underlying growth over the past few years bolstered by the occasional sensibly priced acquisition and there is no reason to think this will not continue. Indeed, founder and managing director Ross Shrimpton still owns most of the business so we can safely assume investor and management interests are well aligned. 

Even after today's rise I estimate the stock trades on around 8.5 times FY22 earnings, a substantial discount to larger peer PeopleIn Ltd (ASX:PPE) which trades on 13 times consensus forecast earnings. A repeat of the last few years performance should see ASH investors enjoy a triple whammy of fat fully franked dividends, earnings growth and multiple expansion.