Buy and hold investing can be a powerful way for income investors to grow their wealth.
The key is identifying high-quality ASX dividend stocks that are positioned for sustainable payouts and steady growth.
Let's look at three dividend stocks that analysts are bullish on right now and believe could reward patient investors well into the future. They are as follows:
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Accent Group Ltd (ASX: AX1)
The first ASX dividend stock to look at for a buy and hold investment is Accent Group.
It is a leading player in Australia's leisure footwear market. With over 800 stores, 34 owned brands, and a strong online presence, Accent commands approximately 30% of Australia's $3 billion leisure footwear retailing market.
Bell Potter is bullish on the company's ability to capitalise on growth in the athleisure market, driven by its own brands.
The broker expects this to support fully franked dividends of 13.7 cents per share in FY 2025 and 15.6 cents in FY 2026. Based on its current share price of $2.29, these translate to attractive dividend yields of 6% and 6.8%, respectively.
Bell Potter currently has a buy rating on Accent Group shares and a price target of $2.75.
IPH Ltd (ASX: IPH)
Another strong contender for income investors is IPH, which is an international leader in intellectual property (IP) services. It has a client base spanning Fortune Global 500 companies, SMEs, and research organisations, and operates in 10 jurisdictions and over 25 countries.
IPH's services are highly defensive, as demand for IP protection remains robust regardless of broader economic conditions. This stability has allowed the company to grow its dividend every year for the past decade.
The good news is that Goldman Sachs expects this trend to continue, forecasting fully franked dividends of 36 cents per share in FY 2025 and 39 cents per share in FY 2026. At the current share price of $4.91, this implies yields of 7.3% and 7.9%, respectively.
Goldman Sachs has a buy rating and a price target of $7.50 on IPH shares.
Universal Store Holdings Ltd (ASX: UNI)
Rounding out the list is youth fashion retailer Universal Store. It owns the Universal Store, Perfect Stranger, and Thrills brands.
Bell Potter likes the company, highlighting its store roll-out plans, private label penetration, and solid earnings trajectory. The broker notes that with private label products already at ~46% of sales, Universal Store is well-positioned to expand margins and deliver strong results.
The broker expects this to underpin fully franked dividends of 31.4 cents per share in FY 2025 and 36.8 cents per share in FY 2026. At the current share price of $7.91, these equate to yields of 4% and 4.65%, respectively.
Bell Potter has a buy rating and a price target of $8.85 on Universal Store shares.
