2 ASX dividend shares with yields above 7%!

These stocks offer investors significant potential income.

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Key points

  • Two ASX dividend shares offer attractive yields due to their discounted valuations — Accent Group (ASX: AX1) and Bailador Technology Investments (ASX: BTI) are trading at significant discounts, translating to grossed-up dividend yields of 7.6% and 9.25% respectively for FY26.
  • Accent Group's share price has dropped 60% in the past year despite the footwear retailer expanding through its Sports Direct partnership; UBS forecasts dividends to grow steadily in coming years with shares trading at 13x FY26 earnings.
  • Bailador shares offer a nearly 40% discount to the net tangible assets while its tech-focused portfolio companies are growing revenue at a rapid rate, positioning the investment company for potential value increases ahead.

ASX dividend shares can be a great source of cash returns for investors because they can pay dividends and hopefully grow earnings over time.

Businesses that trade at large discounts to their underlying value can provide a sizeable yield. The lower the price/earnings (P/E) ratio, the larger the dividend yield.

There are some very impressive dividend yields out there for investors to take advantage of. I'm going to talk about two with potentially large payouts.

Accent Group Ltd (ASX: AX1)

Accent is a significant retailer of footwear in Australia. It owns a number of brands including The Athlete's Foot, Nude Lucy, Stylerunner, Platypus and other brands. It also acts as a retailer of a number of global brands, including Vans, Hoka, Herschel, Skechers Ugg and others. Additionally, the ASX dividend share recently started opening Sports Direct stores Australia.

That agreement with Frasers to open Sports Direct stores locally has led to access to Frasers brands like Everlast, Karrimor, Lonsdale, Slazenger, as well as global brands like Nike, Adidas, Under Armour New Balance and Puma.

The company recently reported a trading update that showed total group owned sales were up 3.7% year-over-year, though the gross profit margin was down 1.6% year-over-year. FY26 full-year operating profit (EBIT) is expected to be in the range of between $85 million and $95 million, which sadly disappointed the market.

With the Accent share price down 60% in the last year, its dividend yield is still expected to be large, even if the payout projection has reduced. UBS forecasts that Accent could pay an annual dividend per share of 5 cents in FY26, translating into a grossed-up dividend yield of 7.6%, including franking credits.

UBS forecasts that Accent's annual dividend per share could steadily increase over the subsequent financial years. It's trading at 13x FY26's estimated earnings, with profit projected to rise from there.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador is an investment company that focuses on technology businesses which have compelling financials, strong growth potential, possible international revenue generation and the ability to generate repeat revenue.

This ASX dividend share is invested in software across a number of areas including hotel channel management and distribution for online bookings, financial advice and investment management, digital healthcare, tours and activities booking, volunteer management, AI-enabled property investment, fitness and wellness sector and more.

The businesses in the Bailador portfolio are growing at a rapid pace, with FY25 seeing a portfolio-weighted revenue growth rate of 47%. If the businesses continue growing at that sort of speed, the portfolio value could shoot higher in the coming years.

In a December update, Bailador reported that its Updoc value had increased by 20.5% and the PropHero value jumped 45.6%, taking the November 2025 pro-forma pre-tax net tangible assets (NTA) per share to $1.98. That means the Bailador share price is trading at a discount of close to 40%, which is huge.

Due to that massive discount, the potential annualised Bailador grossed-up dividend yield for FY26 is 9.25%, including franking credits.

Motley Fool contributor Tristan Harrison has positions in Accent Group and Bailador Technology Investments. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments and Nike. The Motley Fool Australia has recommended Accent Group, Bailador Technology Investments, and Nike. 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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