1 ASX dividend stock down 36% I’d buy right now

The ASX dividend stock Pinnacle Investment Management Group Ltd (ASX: PNI) has sunk a painful 36% since its February 2025 peak. When a business like Pinnacle falls that far, I think it’s a great time to consider an investment.

Pinnacle is invested in a portfolio of funds management businesses (affiliates), so funds under management (FUM), management fees and performance fees are a core part of the ASX dividend stock’s performance.

The business recently reported its FY26 half-year result, which reinforced to me why it’s a strong pick for dividend income.

Solid HY26 result

The company reported that its bottom line – the net profit after tax – declined by 11% to $67.3 million. That was essentially because performance fees (post-tax) contributed $13.4 million of Pinnacle’s net profit, compared to $36.4 million in the prior corresponding period.

Pinnacle noted that its affiliates have continued medium-term outperformance across many affiliates, with 86% of five-year affiliate strategies outperforming their respective benchmarks over the five years to 31 December 2025.

Excluding performance fees, Pinnacle’s net profit rose 37% year-over-year, or it was 11% higher than the second half of FY25.

Pinnacle reported a record net inflows for the half-year period of $17.2 billion, with domestic retail net inflows of $6.8 billion, domestic institutional net inflows of $7 billion and international net inflows of $3.4 billion.

The aggregate affiliate FUM grew to $202.5 billion at 31 December 2025, up $23.1 billion, or 13%, from $179.4 billion at 30 June 2025. Affiliate retail FUM grew 18% over the six months to $46.7 billion and affiliate international FUM rose 12% to $57.8 billion.

Pinnacle also noted that all of its affiliates are profitable, with revenue and core earnings continuing to build.

The ASX dividend stock also welcomed its 19^th affiliate, Advantage Partners of Japan and also announced a further investment into Pacific Asset Management.

With the business paying out virtually all of its net profit as a dividend, the payout was 12% lower than the FY25 half-year dividend. However, it was 7% higher than the FY25 final dividend.

ASX dividend stock credentials

So far, FY26 has been very volatile in terms of share market valuations, which could have impact earnings and the dividend in the annual result. However, the future of dividend growth looks very promising, in my view.

The broker UBS forecasts that the business could pay an annual dividend per share of 81 cents in FY27. The payout could then be increased each year to FY30 when the payment could be $1.28 per share, representing growth of 58% between FY26 to FY30. I don’t know what the level of franking will be, so I’ll calculate the potential dividend yield without franking credits.

Those projections suggest a dividend yield of 5.8% in FY26 and 7.8% in FY30, excluding franking credits. I think those would be very pleasing yields if they happen.

The post 1 ASX dividend stock down 36% I’d buy right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Pinnacle Investment Management Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.