If you are seeking some new additions to an income portfolio, then it could be worth considering the ASX dividend stock in this article.
That's because not only could it be destined to rise materially, but it is being tipped to provide investors with above-average dividend yields according to Bell Potter.
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Which ASX dividend stock?
The stock that Bell Potter is bullish on is Universal Store Holdings Ltd (ASX: UNI).
It is the youth fashion retailer behind the eponymous Universal Store brand, as well as the Thrills and Perfect Stranger brands.
Bell Potter has been pleased with the company's performance this year in a difficult economic environment. It said:
Universal Store Holdings (UNI) provided a trading update for the first 43 weeks of FY26: group retail sales of +14% on pcp broadly in line with BPe, like-for-like (LFL) sales on pcp of +8.5% and +12.9% for key banners, Universal Store (US) and Perfect Stranger (PS) respectively. The improved growth rate from the last update at UNI's key banner, US (+8.1% at end of Apr vs +7.1% at mid-Feb) was supported by some benefit in comps in the pcp through Apr.
FY26 guidance of revenue at $368-375m (+11.5% at mid-point) and EBITA of $61.5-64.5m was provided, in line with Consensus implying gross margins remaining in line. FY26 new store openings were also tracking to the previous guidance of 11-17 across the three banners.
Major upside and big income
According to the note, the broker has a buy rating and $9.30 price target on the ASX dividend stock.
Based on its current share price of $6.46, this implies potential upside of 44% for investors over the next 12 months.
As for income, Bell Potter is forecasting fully franked dividends of 36.9 cents per share in FY 2026, 39.3 cents per share in FY 2027, and then 44.6 cents per share in FY 2028.
This equates to fully franked dividend yields of 5.7%, 6.1%, and 6.9%, respectively.
Commenting on its buy recommendation, Bell Potter said:
At 13x FY27e P/E (BPe), we see an entry opportunity to a high-quality retailer as we remain optimistic on UNI's performance in 4Q26 given supportive comps and look forward to FY27e in delivering continued execution driven market share expansion across retail banners.
In line with selective consumption trends across the broader sector, we retain our views of the youth customer prioritising ontrend streetwear and expect UNI to benefit with their leading position. Maintain BUY.
