ASX dividend stocks are a perfect option for investors looking for passive income opportunities.
You've got your high-yield income stocks and stable blue-chip companies. Choosing the right yield usually balancing potential for risk, income and growth
But what about the high-yield ASX dividend shares which can offer both?
Here's one I'd pick.
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Why I'd buy Accent Group Ltd (ASX: AX1) today
Accent is a footwear and clothing retailer, wholesaler, and distributor which owns and operates more than 800 retail stores and 35 online platforms across Australia and New Zealand. Its brands include The Athlete's Foot and Saucony, which sell athletic footwear and general sportswear. Accent also distributes well-known brands like Vans, Timberland, and Sketchers.
The company has consistently expanded, hiked its sales volumes and has benefitted from solid cash generation.
The company recently said that it is actively pursuing a growth strategy to expand its new and high-performing brands. In FY26 it plans to open over 40 new stores in Australia and New Zealand. The company is actively shifting its portfolio away from underperforming businesses to concentrate on operational efficiency and profitability.
It's been a tricky 18 months for the business. At the time of writing, Accent shares closed nearly 5% higher yesterday, to 90 cents per share. But they're currently a whopping 50% lower over the past 12 months. This is mostly due to overall weakness in the footwear sector of Australia's retail sector.
Despite this, the company has continued to pay attractive dividend yields every six months dating back to 2016.
Ascent will pay its shareholders an interim dividend of 3.25 cents per share this week, which translates to a yield around 7% based on the current share price. And it includes franking credits too.
This is well above the average ASX dividend yield which is around 5%.
And the best part is, analysts are tipping huge growth for the year ahead.
What are analysts predicting for the ASX dividend stock and its share price?
TradingView data shows that many analysts are bullish on Ascent shares. Out of 13 analysts, five have a buy or strong buy rating and another seven have a hold rating.
But they all agree that an upside is ahead.
The average target price is $1.21 a piece, which implies around 35% upside at the time of writing. Meanwhile others think the ASX dividend stock could jump nearly 100% to $1.75.
Analysts are tipping its dividends to increase over the next year or two too. The dividend per share is projected to increase to 4.3 cents in FY26, up to 6 cents in FY27 and 8 cents in FY28.
