Why I think these 2 ASX dividend shares offer great buying right now

I believe these businesses are valued way too cheaply.

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Key points

  • Undervalued in the ASX 300, Accent benefits from RBA rate cuts and plans expansion through its Sports Direct stores, with an appealing valuation trading at under 10x FY27's estimated earnings and a grossed-up dividend yield of 10.7%.
  • Rural Funds trades at a 35% discount to its adjusted net asset value (NAV), providing a potentially lucrative opportunity with growing rental income and a yield of 5.8%, bolstered by anticipated RBA rate cuts.
  • Both Accent and Rural Funds represent attractive dividend stocks due to their appealing valuations and growth potential, promising substantial future dividends amidst economic shifts.

There are some unmissable ASX dividend shares trading at bargain prices right now, despite the significant rise of the S&P/ASX 300 Index (ASX: XKO).

The two stocks I'm going to talk about are two of the most attractive businesses to me right now. As good as the dividend yields are, the most appealing feature to me is the valuation.

I'll discuss why I think both ASX dividend shares are appealing and how substantial the dividends could be in the coming years.

Accent Group Ltd (ASX: AX1)

I think Accent is one of the most undervalued ASX 300 shares right now. While the footwear and apparel company is selling items to a challenged consumer, the picture is improving following RBA rate cuts, which could spur more discretionary spending.

It has a number of compelling businesses including The Athlete's Foot, Nude Lucy and Hype. It's also the local distributor for a number of global brands, including Hoka, Skechers, Merrell, Saucony, Timberland, Vans and Lacoste.

In the first seven weeks of FY26, the company saw total owned sales growth of 2% year-over-year and it's targeting high-single digit operating profit (EBIT) growth in FY26 (including the start-up costs associated with Sports Direct).

It's the Sports Direct opportunity that I believe the market is underestimating because of its plan to open 50 of these large sports stores in the first six years in Australia and potentially reach 100 over time. The agreement will allow it to sell Frasers brands like Everlast, Lonsdale, Slazenger and Hot Tuna in stores. Plus, the Australian and New Zealand stores Accent opens could sell global brands like Nike, Adidas, ASICS, New Balance, Under Armour and Puma.

Accent plans to open a handful of Sports Direct stores and the online store during FY26.

According to the forecasts on Commsec, the ASX dividend share is trading at under 10x FY27's estimated earnings with a potential grossed-up dividend yield of 10.7%, including franking credits.

Rural Funds Group (ASX: RFF)

I love finding ASX dividend shares that are trading at a clear discount to their underlying value. It's somewhat easier to find undervalued opportunities in the real estate investment trust (REIT) space because they regularly tell investors what its portfolio's underlying value is.

Every result, REITs such as Rural Funds tell investors what their portfolio is worth. Rural Runds reports an adjusted net asset value (NAV) figure. It's adjusted to include the market value of water rights held by the business.

At 30 June 2025, Rural Funds (a farmland landlord) had an adjusted NAV of $3.08 per unit. Therefore, it's currently at a discount of approximately 35%, which looks like a big bargain to me.

Rental income is steadily growing thanks to rental indexation built into most of the contracts. But, excitingly, recent and upcoming RBA rate cuts could be a significant tailwind for investors. It could reduce interest costs (boosting rental profits and potentially the distribution), it could increase the underlying value of the farms (helping the adjusted NAV) and it could help reduce the discount between the adjusted NAV and the ASX dividend share.

It's expecting to pay a distribution equivalent to a yield of 5.8%.

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Rural Funds Group. 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 Scott Phillips.

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