The ASX dividend stock JB Hi-Fi Ltd (ASX: JBH) has fallen heavily over the last several months, making this a great time to look at the discounted business.
As the above chart shows, the JB Hi-Fi share price has fallen 35% since its peak in August 2025.
Of course, something is not a buy just because it has fallen. But, as an ASX retail stock, it's understandable there is cyclicality to the JB Hi-Fi share price and somewhat to the earnings as well.
After such a large decline, I think it's a great time to consider investing in this market-leading business.
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ASX dividend stock credentials
The company has a strong track record of dividend growth over the years. In the past 13 years, its dividend has been hiked for nearly every one of those years, aside from one year during the high inflation period a few years ago.
Time will tell what the FY26 annual dividend is, but it's important to remember that the business has already paid its FY26 interim dividend.
According to the projection on Commsec, the business is forecast to pay an annual dividend per share of $3.38 in FY26.
At the time of writing, that translates into an estimated annual grossed-up dividend yield of 6.1%, including franking credits. There are not many ASX blue-chip shares that have a dividend yield as attractive as that.
Why this looks like a good time to invest
While the current economic conditions are not ideal for a retailer, it's this environment that has led to the much lower JB Hi-Fi share price.
I think it's essential to remember that all we can do is buy the business at a good price, which is what we're being presented with right now.
According to the projection on Commsec, the ASX dividend stock is forecast to generate earnings per share (EPS) of $4.50 in FY26. That means it's valued at 17x FY26's estimated earnings. I think that's an appealing level, considering earnings are expected to grow in both FY27 and FY28.
In its latest quarterly update, the business reported ongoing sales growth for the period of 1 January 2026 to 31 March 2026. JB Hi-Fi Australia sales rose 4% year over year, JB Hi-Fi New Zealand sales grew 23.2%, The Good Guys sales climbed 2.5% and only E&S (its smallest business) saw sales drop by 1.4%.
If it can keep its costs low and continue growing sales (and profit) over time, then I think this ASX dividend has a very promising future as Australia continues its digitalisation.
But, it's not the only business I have my eyes on right now.
