3 ASX dividend stocks are screaming buys and I'm taking the bait

These stocks have a lot to offer income-focused investors. I'm planning to invest.

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Key points

  • Share prices' fluctuation provides opportunities to buy into promising ASX dividend stocks with strong earnings and capital growth potential.
  • Pinnacle Investment Management, Accent Group, and Rural Funds Group offer attractive valuations, potential growth, and compelling dividend yields.
  • Pinnacle and Accent show potential for significant dividend yields and growth, while Rural Funds offers undervalued assets with promising rental income and profit growth.

Share prices are always changing, giving investors the opportunity to buy into businesses at cheaper prices sometimes. There are a few ASX dividend stocks I've got my eyes on that I'm planning to buy this month.

I want to see strong potential for earnings growth and capital growth, while also looking for the attraction of pleasing cash flow from the businesses highlighted.

Within the next week or so, I'm planning to put some money towards the following investments, assuming valuations remain attractive.

Pinnacle Investment Management Group Ltd (ASX: PNI)

As the chart below shows, the Pinnacle share price has dropped close to 30% since August 2025. I like to use times of market volatility to invest in this business because of how it's connected to the performance of share markets.

It's invested in a portfolio of funds management businesses, which it calls affiliates. It takes an investment stake in them and then helps them grow. Some of the services it provides include seed funds under management (FUM) and working capital, distribution and client services, fund administration, legal, finance, compliance, technology, and other infrastructure.

You may recognise some of the fund managers the ASX dividend stock has investments in, including Hyperion, Plato, Solaris, Antipodes, Coolabah, Firetrail, Life Cycle, and Pacific Asset Management.

In FY25, 91% of affiliate strategies outperformed over a five-year period, with 35% of strategies outperforming by more than 5% per annum. This is helpful for driving existing FUM growth organically and attracting new FUM. In FY25, there were $23.1 billion of net inflows. The 63% rise in total affiliate FUM to $179.4 billion helped Pinnacle's net profit after tax (NPAT) climb by 49% and the dividend per share increase by 43% to 60 cents.

If the dividend were maintained in FY26, it'd have a grossed-up dividend yield of approximately 4.5%, including franking credits.

Accent Group Ltd (ASX: AX1)

Accent is an ASX-listed dividend stock that is best known for selling footwear through a number of brands. It's the local distributor for brands such as Ugg, Hoka, Skechers, Vans, Herschel, Lacoste, and Dickies. The company also has its own brands such as The Athlete's Foot, Stylerunner, and Nude Lucy.

I believe the retailer looks much more appealing in value after declining 30% since June 2025, as the chart below shows.

What I'm particularly excited about with this business is the potential with the new agreement to open Sports Direct stores in local market, as well as operating an online store. The local sports market is worth billions of dollars, so there's a large opportunity for Accent to tap into. Plus, Accent gains access to a few new brands to sell with the new partnership with Frasers Group, including Lonsdale, Everlast, Slazenger, Karrimor, and more. Accent could open dozens of Sports Direct stores in the coming years.

The projection on Commsec suggests a grossed-up dividend yield of around 8.5% in FY26, including franking credits.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT) that owns different farms across Australia, which include cattle, vineyards, almonds, macadamias, and cropping.

The business continues to trade at a discount of close to 40% to its adjusted net asset value (NAV) from June 2025, meaning it looks very undervalued to me.

It's this large discount that has unlocked a pleasing distribution yield from the ASX dividend stock.

The business is expecting to pay a distribution that translates into a forward yield of 6.2%.

With in-built rental growth with most of its tenants, I think the future bodes well for future rental income and net profit growth. The lower RBA cash rate is also a good sign for lower debt costs and higher property values.

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group and 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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