Market volatility can feel uncomfortable — especially when share prices are falling. But for patient investors focused on long-term income, these moments can also present rare buying opportunities.
One of the smartest strategies in times like these? Looking for quality ASX dividend stocks that have been oversold.
Right now, two popular options have seen their share prices tumble more than 30% from their highs. But analysts remain bullish, with both companies forecast to deliver generous fully franked dividends and major upside from current levels. Here's what they are recommending:
Accent Group Ltd (ASX: AX1)
The first ASX dividend stock to look at is Accent Group. Its shares have dropped over 30% from their high and are now changing hands at $1.81.
This footwear-focused retailer owns and operates leading brands like The Athlete's Foot, Hype DC, and Platypus. Despite tough economic conditions, the company continues to expand its store network and grow its vertical brand portfolio.
Bell Potter remains upbeat on its outlook. So much so, the broker has a buy rating and a $2.75 price target on its shares. This implies potential upside of more than 50% from where they trade today.
In respect to income, Bell Potter is forecasting fully franked dividends of 10.2 cents per share in FY 2025 and then 12.7 cents per share in FY 2026. Based on its current share price, this equates to dividend yields of 5.6% and 7%, respectively.
This means that a potential total return of over 55% could be on the cards here.
Super Retail Group Ltd (ASX: SUL)
Another ASX dividend stock that has fallen hard is Super Retail. Its shares are down 30% from their high and are now trading at $12.87.
Super Retail owns popular retail chains Supercheap Auto, Rebel, BCF and Macpac — all of which continue to benefit from strong brand loyalty and solid margins. While the broader retail sector faces challenges, Super Retail has held up well and continues to return cash to shareholders.
Goldman Sachs is tipping its shares as a buy with a $15.50 price target, which suggests that upside of around 20% is possible for investors.
In addition, the broker is forecasting fully franked dividends of 64 cents per share in FY 2025 and then 66 cents in FY 2026. Based on its current share price, this will mean dividend yields of 5% and 5.1%, respectively.
That means a total potential return of approximately 25%.
As the above demonstrates, ASX dividend stocks aren't just about income. When bought at the right price, they can also deliver significant capital growth over time.
