The Domino's Pizza Enterprises Ltd (ASX: DMP) share price has been well and truly out of form over the last 12 months.
During this time, the ASX dividend stock has lost 55% of its value.
This has been driven by management's failed execution of its response to inflationary pressures.
And while its performance and those declines are very disappointing, it could have created a buying opportunity for income investors.
An ASX dividend stock to buy
A number of brokers believe that Domino's shares are in the buy zone right now.
For example, Ord Minnett currently has an accumulate rating and lofty $68.00 price target on the company's shares. This implies over 70% upside for investors over the next 12 months.
In addition, the broker sees the pizza chain operator as an attractive option for income investors. It is forecasting dividends per share of $1.12 in FY 2024 and then $1.70 in FY 2025.
Based on the current Domino's share price of $39.60, this will mean yields of 2.8% and 4.3%, respectively.
Who else is bullish?
Over at Macquarie, its analysts are positive, but expect it to take longer for Domino's dividend to recover to former glories.
Macquarie has an outperform rating and $48.00 price target on the ASX dividend stock, which suggests upside of over 20% from current levels.
As for income, the broker has pencilled in dividends per share of $1.03 in FY 2024 and then $1.16 in FY 2025. This would mean dividend yields of 2.6% and 2.9%, respectively, for investors.
All in all, these analysts appear to believe that Domino's beaten down shares could be a great option for income investors looking for some bargain buys.
