A sharp share price fall is never comfortable, but for long-term income investors it can sometimes create rare opportunities.
When a quality business is sold down hard, dividend yields can quietly become very attractive for those willing to look beyond short-term pain.
One ASX dividend stock that fits this description right now is Accent Group Ltd (ASX: AX1).
Why could it be an ASX dividend stock to buy?
Over the past 12 months, Accent Group shares have fallen roughly 60%, leaving them trading around 92 cents.
That decline reflects a tough retail environment, cost pressures, and cautious sentiment toward discretionary spending. However, the underlying business remains robust, and the income outlook is starting to look compelling.
Accent Group is a leading footwear retailer in Australia and New Zealand, operating a large portfolio of well-known brands such as Platypus, Hype, Athlete’s Foot, and Skechers. It also has growing exposure to exclusive and private-label brands.
Passive income
From a passive income perspective, the current weakness in the Accent share price has pushed forecast dividend yields to levels that are hard to ignore.
For example, consensus estimates point to fully franked dividends of 4.8 cents per share in FY 2026 and 5.9 cents per share in FY 2027. Based on its current share price, this equates to forward yields of approximately 5.2% and 6.4%, respectively.
When franking credits are taken into account, the grossed-up yield is even more attractive for Australian investors.
Where are its shares going next?
There’s more than just income on offer with this ASX dividend stock. There’s also potential for a meaningful recovery in its share price over the next 12 months.
At present, Accent Group’s shares are changing hands for 13x estimated FY 2026 earnings and 10x FY 2027 earnings. This is notably below average and means there is re-rating potential should its performance improve in 2026.
The chances of an improvement are reasonably strong given how interest rate cuts in 2025 are expected to boost consumer spending in 2026. After all, there is only so long that consumers can put off buying new shoes.
In addition, the company is rolling out the Sports Direct brand across Australia. If this rollout goes well, it could boost sentiment. This could be particularly true given its plans to open at least 50 stores across the country over the next five years.
Overall, for those seeking an ASX dividend stock they can buy, hold, and potentially be paid to wait, Accent Group’s current weakness may turn out to be an incredible buying opportunity.
The post 1 excellent ASX dividend stock, down 60%, to buy and hold for the long term appeared first on The Motley Fool Australia.
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* Returns as of 18 November 2025
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Motley Fool contributor James Mickleboro has positions in Accent Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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