UPDATE: Analysts at Bell Potter have just released a report highlighting three ASX dividend shares poised for significant growth, projecting potential gains of up to 50% within the next year. This news comes as interest rates are expected to ease further in 2026, making dividend stocks increasingly attractive for income investors.
The first notable pick is Accent Group Ltd (ASX: AX1), a leading footwear retailer. Bell Potter has issued a buy rating with a price target of $1.80, indicating an impressive potential upside of nearly 50% from its current share price of $1.21. With forecasts of fully franked dividends of 7.8 cents per share for FY 2026 and 9.2 cents for FY 2027, investors can expect yields of 6.4% and 7.6%, respectively.
Next on the list is Harvey Norman Holdings Ltd (ASX: HVN), an electronics retailer also recommended by Bell Potter. The firm has assigned a buy rating and set a price target of $8.30, suggesting a possible upside of 13% over the next twelve months. Harvey Norman continues to impress shareholders with robust fully franked dividends, projected at 30.9 cents per share for FY 2026 and 35.3 cents for FY 2027. At its current price of $7.33, this translates to dividend yields of 4.2% and 4.8%, respectively.
The third standout is Rural Funds Group (ASX: RFF), which provides a unique investment opportunity in farmland. This company leases properties spanning cattle, cropping, vineyards, and orchards, ensuring inflation-linked rent increases through long-term contracts. Bell Potter rates it as a buy, with a price target of $2.45, indicating a potential upside of 28% within the next year. The broker anticipates dividends of 11.7 cents per share for both FY 2026 and FY 2027, yielding 6.1% based on its current price of $1.91.
These recommendations come as part of a broader trend where quality ASX shares are regaining attention as reliable income sources. As interest rates are projected to decline, the appetite for dividend stocks is surging, making this an opportune moment for investors to consider their options.
Investors should keep a close eye on these developments, as the landscape for ASX dividend shares is rapidly changing. The next twelve months could prove pivotal for income-focused investors, especially with the backing of strong analyst ratings and substantial potential returns.
Stay tuned for more updates on these stocks as they evolve in the coming months.
