The Accent Group Ltd (ASX: AX1) share price has been out of form on Wednesday and is dropping notably lower.
In late afternoon trade, the footwear focused retailer’s shares are down over 4% to $2.23.
Despite this decline, the Accent share price is still up a massive 75% over the last 12 months.
Why is the Accent share price sinking today?
The good news for shareholders is that today’s decline has nothing to do with the performance of its business.
Instead, this decline can be attributed to Accent shares trading ex-dividend today for its upcoming interim dividend.
When a share trades ex-dividend, it tends to drop in line with its payout to reflect the fact that the buyer will not be receiving the dividend.
In respect to Accent, its eligible shareholders (those that owned shares at the close of trade on Tuesday) can now look forward to receiving its 8 cents per share fully franked dividend in their accounts next week on 18 March.
Is it too late to buy Accent shares?
Although the Accent share price is up 75% over the last 12 months, it has been tipped to go even higher in the future.
According to a note out of Bell Potter from late last month, its analysts currently have a buy rating and $2.65 price target on the company’s shares.
Based on the current Accent share price, this price target implies potential upside of almost 19% over the next 12 months.
In addition to this, Bell Potter estimates that its shares offer dividend yields of 5.3% in FY 2021 and 5.5% in FY 2022. This will mean a potential total annual return of approximately 24% if Bell Potter is on the money with its recommendation.
In light of this, Accent shares could be worth considering if you’re looking for new additions to your portfolio this week.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.