Market fluctuations can be unsettling—especially when stock prices take a hit. However, for long-term investors focused on dividend investing in Australia, these downturns can unlock excellent buying opportunities.

A smart approach in such conditions? Identifying high-quality ASX dividend stocks that have been temporarily oversold.

Right now, two well-established Australian dividend stocks with strong fundamentals have seen their share prices drop over 30% from their peak levels. Yet, analysts remain optimistic, forecasting solid ASX dividends in 2025 and substantial upside potential. 

Let’s take a closer look at these discounted investment opportunities.

Accent Group Ltd (ASX: AX1)

One compelling ASX dividend stock to consider is Accent Group. Its share price has dropped over 30% from its previous high and is currently trading at $1.81.

This leading footwear retailer operates well-known brands like The Athlete’s Foot, Hype DC, and Platypus. Despite challenging economic conditions, the company continues to expand its retail footprint and enhance its vertical brand offerings.

Investment firm Bell Potter maintains a positive outlook on Accent Group’s future, assigning it a buy rating with a price target of $2.75. If the stock reaches this target, it represents an impressive upside of more than 50% from current levels.

Regarding dividends, Bell Potter forecasts fully franked payouts of 10.2 cents per share in FY 2025 and 12.7 cents per share in FY 2026. At today’s share price, this equates to dividend yields of 5.6% and 7%, respectively.

This suggests that investors could see a total return exceeding 55%, making it an attractive opportunity for those seeking the best dividend stocks in Australia.

Super Retail Group Ltd (ASX: SUL)

Another high-quality Australian dividend stock trading at a discount is Super Retail. Its shares have slid 30% from their peak, now trading at $12.87.

Super Retail owns some of Australia’s most popular retail chains, including Supercheap Auto, Rebel, BCF, and Macpac. These brands continue to enjoy strong customer loyalty and healthy profit margins. Despite headwinds in the broader retail sector, Super Retail has demonstrated resilience and remains committed to rewarding shareholders.

Goldman Sachs is bullish on the stock, assigning it a buy rating with a price target of $15.50. This implies a potential upside of around 20% from current prices.

Furthermore, analysts predict fully franked dividends of 64 cents per share in FY 2025 and 66 cents per share in FY 2026. Based on the current share price, this would translate to dividend yields of 5% and 5.1%, respectively.

With the potential for a total return of approximately 25%, this stock presents an appealing blend of income and growth potential for those focused on dividend investing in Australia.

The Bottom Line

Reliable ASX dividend stocks like Accent Group and Super Retail don’t just offer passive income—they also present opportunities for capital appreciation when bought at the right price. With strong fundamentals, generous ASX dividends in 2025, and significant upside potential, these discounted stocks could be a great addition to a long-term income-focused portfolio.

Disclaimer:

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