2 Australian dividend stars that still offer a good price

Major upside and great dividend yields are on offer here.

If you are looking to boost your income portfolio, there are still some ASX dividend shares offering attractive dividend yields and valuations.

Here are two that could be worth a closer look.

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GQG Partners Inc (ASX: GQG)

One Australian dividend share that could appeal to income investors is GQG Partners.

The fund manager has had a challenging period, with significant fund outflows over the past 12 months driven by a stretch of underperformance. This has largely been the result of its decision to avoid many of the high-flying AI-related stocks that powered markets higher.

However, that positioning now appears to be turning into a tailwind. As enthusiasm for the AI trade has cooled in recent months, GQG's relative performance has improved, which could help rebuild investor confidence.

If this continues, it may act as a catalyst for funds inflows to resume, supporting earnings growth in the periods ahead.

In the meantime, GQG is offering very attractive income. Morgans, for example, is forecasting dividends of approximately 21 cents per share in FY 2026 and FY 2027. Based on its current share price of $1.65, this would mean dividend yields over 12% for both years.

In addition, the broker sees plenty of upside on offer from GQG's shares. Last week, it upgraded them to a buy rating with a $2.03 price target. This implies potential upside of 23% for investors over the next 12 months.

Rural Funds Group (ASX: RFF)

Another Australian dividend share that could be worth considering is Rural Funds Group.

It is a real estate investment trust focused on agricultural assets, including cattle, almonds, macadamias, vineyards, and water rights. These assets are leased to experienced operators under long-term agreements, providing relatively stable and predictable income.

One of the key attractions of the business is its exposure to essential food production and agricultural supply chains. Demand for these assets is supported by long-term population growth and increasing global food consumption.

Rural Funds also benefits from inflation-linked rental increases across much of its portfolio, which can help protect income in a higher inflation environment.

But the main attraction is the income its shares offer. Bell Potter is forecasting dividends per share of 11.7 cents in FY 2026 and FY 2027. Based on its current share price of $2.10, this would mean dividend yields of 5.6% in both years.

Bell Potter has a buy rating and $2.50 price target on its shares. This suggests that upside of 19% is possible between now and this time next year.

Motley Fool contributor James Mickleboro has positions in Gqg Partners. 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 positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Gqg Partners. 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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