Looking to add a quality ASX dividend share to your portfolio with the added potential for some outsized capital gains?
Then you might want to have a look at Count Ltd (ASX: CUP).
In afternoon trade on Monday, Count shares are up 0.5% at $1.065 each, shaking off the 0.5% losses posted by the All Ordinaries Index (ASX: XAO) at this same time.
Taking a step back, shares in the integrated accounting and wealth services provider are up 42% in 12 months, well ahead of the 14.4% one-year gains posted by the All Ords.
The ASX dividend share also trades on a fully-franked trailing yield of 4.5%.
And according to the analysts at Canaccord Genuity, the year ahead could be even more profitable for stockholders.
Here's why.
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ASX dividend share expanding its footprint
In a new report released on Friday, Canaccord sounded a bullish note on Count's acquisition of Oracle Group, announced to the market on 31 March.
The ASX dividend share is purchasing Oracle, which provides financial advice, accounting and investment management services, for $72.2 million. Oracle has a network of 14 offices across New South Wales, Victoria, and Queensland.
"The acquisition will significantly enhance Count's east coast presence and, importantly, materially grow our exposure to highly attractive Wealth segment revenues," Count CEO Hugh Humphrey said on the day.
"We believe this is a good price for a good acquisition," Canaccord analysts said on Friday.
According to the broker:
We believe management has both articulated and executed its inorganic growth strategy with tuck-in acquisitions occurring regularly throughout the year (as has been the case for the past several years) as well as these larger transformational acquisitions such as Diverger in FY24 and now Oracle (expected to close prior to end FY26).
Commenting on the potential benefits of the acquisition for the ASX dividend share, Canaccord noted:
First, it appears a strong cultural fit and increases the exposure to financial planning and Wealth earnings outcomes – a stated desire of management. Secondly, we believe the structure of this business, with a high proportion of salaried employees, presents a lower risk for integration and future earnings. Finally, we believe this acquisition will add further to the 'flywheel' effect and expect there will be a further uplift in earnings in time as a result of this benefit.
Canaccord has a buy rating on Count shares. The broker increased its 12-month price target to $1.65 a share (previously $1.50).
That represents a potential upside of 55% from the current Count share price. And it doesn't include those upcoming dividends.
