With market volatility creating opportunities for investors, now could be a great time to snap up high-quality Australian dividend shares at attractive prices.
Two stocks that stand out right now according to analysts are listed below. Let's take a closer look at why they could be great additions to an income-focused portfolio.
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Accent Group Ltd (ASX: AX1)
Footwear retailer Accent Group is catching the attention of Bell Potter, which sees it as a top pick in the current market. It owns a portfolio of popular store brands, including HypeDC, Platypus, The Athlete's Foot, Glue Store, and Nude Lucy, giving it a strong presence in both the footwear and youth fashion markets.
Following the recent market selloff, Accent Group's shares are trading at just 13x estimated FY 2025 earnings. Bell Potter believes this presents a buying opportunity, highlighting the company's market leadership and expansion potential.
Its analysts note that they "continue to view AX1 as a key pick in our retail sector coverage given their scale as Australia's market leader, growth adjacencies in both footwear/apparel from exclusive partnerships & TAF channel conversion, and growing vertical brand strategy led by Nude Lucy."
As for dividends, Bell Potter is forecasting some very attractive dividend yields in the near term. The broker expects fully franked dividends of 13.7 cents per share in FY 2025 and then 15.6 cents per share in FY 2026. Based on the current share price of $1.76, this represents dividend yields of 7.8% and 8.9%, respectively.
Bell Potter also sees significant upside for its shares with its buy rating and $2.75 price target.
GQG Partners Inc (ASX: GQG)
Another Australian dividend share that could be a bargain at current levels is GQG Partners. It is a global investment firm managing US$153 billion in active equity portfolios.
Goldman Sachs is positive on the company, pointing out its strong net fund flows, robust earnings growth, and an undemanding valuation. Right now, GQG shares are trading at just 8x estimated FY 2025 earnings, which the broker believes is far too cheap given the company's performance.
But the good news is that this weak share price means the potential dividend yields on offer with GQG shares are massive. Goldman is forecasting dividends per share of 15 US cents (23.9 Australian cents) in FY 2025 and 17 US cents (27 Australian cents) in FY 2026. Based on the current share price of $2.13, these forecasts represent huge dividend yields of 11.2% and 12.7%, respectively.
As with Accent Group, Goldman sees major upside potential for its shares. It has put a buy rating and $3.20 price target on its shares.
