Now could be an opportune time to buy the ASX dividend stocks in this article.
That's because according to analysts at Morgans, these stocks could be destined to rise strongly from current levels.
And before they do, it is urging income investors to lock in their forecast dividend yields now. It said:
Image source: Getty Images
Accent Group Ltd (ASX: AX1)
This footwear-focused retailer is going through a tough period, but Morgans thinks it is worth sticking with it. This is especially the case given its cheap valuation and positive medium term outlook. It said:
AX1 reported 1H26 EBIT which was down 30% yoy to $56.5m, in line with the revised guidance range provided in November ($55-60m). The decline was driven by soft comp sales and significant operating de-leverage from lower gross margins. AX1 has made the unsurprising decision to cease operations of loss-making Glue store, which contributed $8.4m EBIT loss in 1H26. On an underlying basis, EBIT fell 10%. We see this providing incremental benefit on group earnings in FY27. We have increased our EBIT by 1.5% in FY26 and by 11% in FY27.
Our blended valuation lifts to $1.30 (from $1.10). We have upgraded to a BUY (from HOLD). We see significant earnings growth in FY27, driven by underlying FY26 run-rate (ex-Glue), this makes the stock look inexpensive at ~10x FY27 P/E and ~5.6% yield.
Morgans is forecasting fully franked dividends of 4.3 cents per share in FY 2026 and then 6.3 cents per share in FY 2027. Based on its current share price of $1.00, this would mean dividend yields of 4.3% and 6.3%, respectively.
As mentioned above, it has a buy rating and $1.30 price target on the ASX dividend stock. This implies potential upside of 30% over the next 12 months.
Universal Store Holdings Ltd (ASX: UNI)
Another ASX dividend stock that Morgans is tipping as a buy is youth fashion retailer Universal Store.
It was impressed with its performance in the first half and positive start to the second half. It said:
UNI reported a strong 1H26 result which was ahead of expectations. Sales were up 14.2% to $209.6m and EBIT grew by 23.2% to $43.6m, EBIT margin up 150bps. The strong sales momentum has continued into the first 7 weeks of the 2H, despite the challenging comps (+20%). UNI has consistently delivered through a challenging retail environment, +7.9% LFL sales CAGR over the last 6 years.
With respect to income, the broker has pencilled in fully franked dividends of 41 cents per share in FY 2026 and then 46 cents per share in FY 2027. Based on its current share price of $8.05, this would mean dividend yields of 5.1% and 5.7%, respectively.
Morgans has a buy rating and $10.60 price target on its shares. This suggests that upside of 32% is possible from current levels.
