These two high-quality ASX dividend stocks have struggled to gain momentum in 2026. Sonic Healthcare Ltd (ASX: SHL) is down around 16% year to date, while JB Hi-Fi Ltd (ASX: JBH) has fallen roughly 23%.
For income-focused investors, a pullback in market leaders like Sonic and JB Hi-Fi can present an opportunity. The ideal setup is a business that grows earnings over time while steadily lifting its dividend, especially when it's trading at a more attractive valuation.
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Sonic Healthcare: global pathology leader
Sonic Healthcare is a global leader in pathology and diagnostic services, with operations spanning Australia, Europe, and the US. Its defensive earnings profile comes from essential healthcare services, which tend to hold up well across economic cycles.
One of its biggest drawcards is its dividend track record. The company has followed a progressive dividend policy, increasing its payout every year since 2013. In its FY26 half-year result, Sonic lifted its interim dividend by 2.3% to 45 cents per share.
The last two dividends declared totalled $1.08 per share, equating to a yield of about 5.4% excluding franking credits. If that level is maintained over the next year, it would translate into a grossed-up yield of roughly 7%, which is appealing for income investors.
There are risks to consider. Currency movements, regulatory changes, and fluctuations in testing volumes can influence Sonic's earnings, particularly following the post-pandemic normalisation in healthcare demand.
Broker sentiment on the ASX dividend stock is mixed. According to data from TradingView, the average price target sits at $24.49, implying potential upside of around 29% from current levels.
JB Hi-Fi: leading electronics seller
Turning to JB Hi-Fi, the retailer remains one of Australia's leading sellers of consumer electronics and home appliances. The ASX dividend stock has built a reputation for strong execution, cost control, and consistent profitability in a highly competitive sector.
JB Hi-Fi also has a solid dividend history. The company increased its dividend every year between 2013 and 2022, before a slight dip in 2023 amid higher interest rates and inflation pressures. Since then, it has resumed growing its payout.
In its FY26 half-year result, JB Hi-Fi lifted its dividend by 23.5% to $2.10 per share, supported by a 7.1% rise in earnings per share to $2.80. The ASX dividend share might not be able to repeat that pace of dividend growth in the near term. However, the income outlook remains attractive.
According to projections on CommSec, JB Hi-Fi is expected to deliver an annual dividend of around $3.41 in FY26. That equates to a potential grossed-up dividend yield of about 6% at current prices. Looking further ahead, CommSec forecasts that dividends will increase to $3.51 in FY27 and $3.83 in FY28, suggesting continued growth potential.
Risks include softer consumer spending, margin pressure, and the cyclical nature of retail demand, particularly in a high interest rate environment.
Even so, analysts remain constructive. Bell Potter Securities recently retained its buy rating on JB Hi-Fi with a $90.00 price target, suggesting a 22% upside. That's broadly in line with the average of 15 analyst forecasts.
Foolish Takeaway
The bottom line is that both Sonic Healthcare and JB Hi-Fi offer a combination of income and long-term growth potential.
With prices of both ASX dividend stocks under pressure in 2026, they may be worth considering for investors seeking reliable dividends at more attractive valuations.
