Income investors have a lot of choice on the Australian share market.
To narrow things down, let's take a look at two ASX dividend shares that Morgans is forecasting to offer 7% and 8% dividend yields in 2027.
Here's what it is recommending to clients:
Accent Group Ltd (ASX: AX1)
Morgans is positive on this footwear retailer. It believes a return to growth is coming in FY 2027, which could make it a good time to snap up shares.
The broker has a buy rating and $1.30 price target on its shares. 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 88 cents, this would mean dividend yields of 4.9% and 7.2%, respectively.
Regal Partners Ltd (ASX: RPL)
Another ASX dividend share that Morgans is positive on is investment company Regal Partners.
It was pleased with its performance in 2025 and believes it is well-placed to build on this in 2026. As a result, it has put a buy rating and $5.00 price target on its shares.
Commenting on the company, the broker said:
Underlying fund performance, along with offshore and product expansion has seen RPL grow FUM 16% in CY25, driving management fee growth of 25%. Performance fees, up 108% (vs pcp), are a clear leading indicator for future FUM growth and sets the business up for continued growth in the higher multiple recurring income streams.
Despite record growth, RPL trades at an undemanding multiple and attractive dividend yield, on this basis we reiterate our BUY rating with a $5.00/sh target price.
As for income, Morgans expects fully franked dividends of 20 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $2.48, this would mean dividend yields of 8% and 8.5%, respectively.
