Times of major market movements can open up unmissable buying opportunities, particularly with ASX dividend income stocks.
The recent worries about the Middle East conflict, fuel supply disruption, inflation, and interest rates have sent various share prices down.
When share prices drop, it pushes up the dividend yield on offer. So, I think it's a great time to buy for brave investors.
Image source: Getty Images
JB Hi-Fi Ltd (ASX: JBH)
Let's start with electronics retailer JB Hi-Fi, which has increased its annual dividend per share most years over the past decade and a half.
Australia's growing population and the increasing number of devices in homes have given this market-leading business a strong earnings tailwind.
I admire how the ASX dividend income stock focuses on efficiency and costs, enabling the business to offer very competitive prices and deliver relatively strong margins.
Its JB Hi-Fi and The Good Guys businesses continue to perform solidly, while the E&S acquisition gives it another avenue for expansion. In the January 2026 trading update, JB Hi-Fi Australian sales grew 4%, and The Good Guys sales were up 2.7%.
Following the 31% decline of the JB Hi-Fi share price in the past six months, it now has a projected FY26 grossed-up dividend yield of 6.3%, including franking credits.
Nick Scali Ltd (ASX: NCK)
Nick Scali is a leading furniture business with its Nick Scali and Plush brands in Australia and, excitingly, a relatively small UK business too.
This ASX dividend income stock increased its payout every year between 2013 and 2023. Higher interest and inflation did impact the business, but I think the current Nick Scali share price valuation makes now a good time to buy, rather than when there's a clear turnaround in economic conditions.
The company thinks it can add dozens more stores across Australia and the UK in the coming years, which can help drive both its revenue and profit margins. Increased scale is a powerful tailwind for the gross profit margin and operating profit (EBIT) margin, in my view.
The Nick Scali share price has dropped approximately 40% in the last six months, making it a lot cheaper. The projection on CommSec suggests the FY26 grossed-up dividend yield could be 7.4%, including franking credits.
Australian Ethical Investment Ltd (ASX: AEF)
The final ASX dividend income stock I want to highlight is Australian Ethical, a fund manager that aims to provide investors with investment products that align with their ethics.
I think a key earnings driver for the business is its superannuation segment, which has almost $10 billion of funds under management (FUM). I'm expecting the superannuation FUM to grow over time thanks to both regular member contributions and the investment returns.
As a funds management business, the company is able to deliver a pleasingly high dividend payout ratio and still achieve good growth. It's not a capital-intensive sector.
According to the forecast on CMC Invest, the ASX dividend stock is forecast to pay an annual dividend per share of 17 cents in FY26. That translates into a grossed-up dividend yield of 5.8%, including franking credits. It has fallen 40% in the past six months.
