Buying dividend shares doesn't mean you have to sacrifice share price gains.
Not when there are ASX 200 shares like the one in this article.
That's because the team at Bell Potter believes it could offer both major upside and an attractive dividend yield over the next 12 months.
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Which ASX 200 share?
Bell Potter is recommending KFC-focused quick-service restaurant operator Collins Foods Ltd (ASX: CKF).
It was pleased with its results for FY 2026 and has lifted its estimates to reflect resilience in Australian same store sales growth. It said:
Collins Foods delivered a solid FY26 result, with record group revenue of $1,592.6m (+8.6% on the pcp), underlying EBITDA of $244.5m (+6.3%), and underlying NPAT of $61.4m (+13.0%).
The resilience in KFC Australia has led us to revise our SSSG expectations, with product innovations (Kwench/expansion into breakfast daypart) and operational enhancements driving greater than expected sales and profitability growth. In KFC Europe, we do not view the first-8 weeks of trading as reflective of the underlying business, given KFC Germany recorded total sales growth +10.1% with SSSG +3.7%, while KFC Netherlands saw improved SSSG throughout the year.
The broker has lifted its "estimates upwards 3%/5%/6% in FY27/28/29e" and its "EBITDA forecasts -1%/2%/14% respectively."
Big potential returns
In response to its results, Bell Potter has reaffirmed its buy rating on the ASX 200 share with an increased price target of $11.10.
Based on its current share price of $8.15, this implies potential upside of 36% for investors over the next 12 months.
In addition, the broker estimates that a 4.2% dividend yield is on the cards in FY 2027, followed by a 4.9% dividend yield in FY 2028.
Commenting on its buy recommendation, Bell Potter said:
We retain our BUY recommendation, increasing our price target by 2.8% as a result of the earnings revisions, while maintaining our target P/E multiple of 18.0x. We expect KFC Australia's recent momentum to continue, supported by a more resilient consumer, providing a near-term buffer against weaker trading in KFC Europe, which we view as temporary. We see the underlying German business as strong and expect CKF's position as the largest franchisee in Germany to be supported by Yum! Brands' endorsement, providing a platform for future acquisitions.
