If you are seeking some new additions to an income portfolio, then it could be worth considering the ASX dividend stock in this article.
That’s because not only could it be destined to rise materially, but it is being tipped to provide investors with above-average dividend yields according to Bell Potter.
Which ASX dividend stock?
The stock that Bell Potter is bullish on is Universal Store Holdings Ltd (ASX: UNI).
It is the youth fashion retailer behind the eponymous Universal Store brand, as well as the Thrills and Perfect Stranger brands.
Bell Potter has been pleased with the company’s performance this year in a difficult economic environment. It said:
Universal Store Holdings (UNI) provided a trading update for the first 43 weeks of FY26: group retail sales of +14% on pcp broadly in line with BPe, like-for-like (LFL) sales on pcp of +8.5% and +12.9% for key banners, Universal Store (US) and Perfect Stranger (PS) respectively. The improved growth rate from the last update at UNI’s key banner, US (+8.1% at end of Apr vs +7.1% at mid-Feb) was supported by some benefit in comps in the pcp through Apr.
FY26 guidance of revenue at $368-375m (+11.5% at mid-point) and EBITA of $61.5-64.5m was provided, in line with Consensus implying gross margins remaining in line. FY26 new store openings were also tracking to the previous guidance of 11-17 across the three banners.
Major upside and big income
According to the note, the broker has a buy rating and $9.30 price target on the ASX dividend stock.
Based on its current share price of $6.46, this implies potential upside of 44% for investors over the next 12 months.
As for income, Bell Potter is forecasting fully franked dividends of 36.9 cents per share in FY 2026, 39.3 cents per share in FY 2027, and then 44.6 cents per share in FY 2028.
This equates to fully franked dividend yields of 5.7%, 6.1%, and 6.9%, respectively.
Commenting on its buy recommendation, Bell Potter said:
At 13x FY27e P/E (BPe), we see an entry opportunity to a high-quality retailer as we remain optimistic on UNI’s performance in 4Q26 given supportive comps and look forward to FY27e in delivering continued execution driven market share expansion across retail banners.
In line with selective consumption trends across the broader sector, we retain our views of the youth customer prioritising ontrend streetwear and expect UNI to benefit with their leading position. Maintain BUY.
The post Why this could be one of the best ASX dividend stocks to buy now appeared first on The Motley Fool Australia.
Should you invest $1,000 in Universal Store right now?
Before you buy Universal Store shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Universal Store wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
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More reading
- These ASX dividend shares offer big yields and potential upside of 20%+
- Forget BHP shares! Buy these ASX dividend shares instead for passive income
- Bell Potter says this ASX dividend share offers a 5% yield and 30% upside
- Why this ASX retail stock is falling after a solid trading update
- Want passive income? These ASX dividend shares offer 5%+ yields
Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.