Westpac is solid but these top ASX dividend stocks are better

Income investors might get better returns from these shares according to analysts.

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Key points

  • Due to Westpac's stretched valuation and some analysts recommending selling, investors are encouraged to explore other ASX dividend shares.
  • With strong brands and growth catalysts from monetary policy changes and partner expansion, Accent Group offers promising dividend yields and a buy recommendation.
  • Undervalued based on net tangible assets, GDI Property Group presents a compelling buy with consistent dividend yield forecasts and potential upside.

While Westpac Banking Corp (ASX: WBC) is a quality business, its valuation is looking stretched after its shares rallied by 22% over the past 12 months.

In light of this, investors might be better looking outside the big four bank for income option, especially with some brokers recommending its shares as a sell with potential downside of 20%.

With that in mind, listed below are two ASX dividend shares that analysts think investors should consider buying today. They are as follows:

Accent Group Ltd (ASX: AX1)

Accent Group could be an ASX dividend stock to buy according to analysts at Bell Potter.

It owns and operates footwear focused retailers such as The Athlete's Foot, Platypus, and Hype DC, along with exclusive distribution rights for major global brands.

Bell Potter believes that its performance could improve in the near term thanks to interest rate cuts. As a result, it feels investors should be snapping up its shares while they are down. It said:

In the near term, we expect monetary policy catalysts to drive recovery in the lifestyle segment from 2Q26e, while in the medium-long term, we see a higher growth focus for AX1 leveraging the outperforming sports segment via dominant global partner and key shareholder, FRAS. With the first Sports Direct store opening in mid-November, we anticipate the unlocking of the sizable store roll-out opportunity for the banner in Australia (50-store target over 6 years), while benefiting from a higher relevance to leading brand partners such as Nike backed by FRAS.

In respect to dividends, Bell Potter is forecasting fully franked payouts of 7.8 cents in FY 2026 and then 9.2 cents in FY 2027. Based on its current share price of $1.31, this equates to dividend yields of 6% and 7%, respectively.

Bell Potter has a buy rating and $1.80 price target on its shares.

GDI Property Group Ltd (ASX: GDI)

Bell Potter also thinks that GDI Property Group could be an ASX dividend stock to buy.

It owns, manages, and develops office property, but also has exposure to car parks and co-living sectors.

The broker highlights that its shares are undervalued based on its net tangible assets (NTA). It said:

No change to our Buy recommendation. GDI continues to trade at a significant -41% discount to NTA which reflects no value for its FM OpCo, and while the Perth office market recovery could be a 'slow burn' with early leasing wins working through for GDI, we do still see upside from current levels which drops straight through to FFO gains

In respect to dividends, the broker is forecasting payouts of 5 cents per share in both FY 2026 and FY 2027. Based on its current share price of 64 cents, this would mean dividend yields of 7.8% for both years.

Bell Potter has a buy rating and 85 cents price target on its shares.

Motley Fool contributor James Mickleboro has positions in Accent 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 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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