Why Ord Minnett rates this ASX 200 dividend stock as a buy

If you are looking to boost your income portfolio with a new ASX 200 dividend stock, then it could be worth listening to Ord Minnett.

That’s because the broker has named one dividend stock that it believes could be in the buy zone right now.

Which ASX 200 dividend stock?

The stock that could be a buy according to Ord Minnett is Pinnacle Investment Management Group Ltd (ASX: PNI).

It is a financial services company that provides distribution services, business support, and entity services to affiliates, and develops and operates investment management businesses.

Ord Minnett wasn’t overly impressed with the ASX 200 dividend stock’s performance during the third quarter. It said:

Pinnacle Investment Management’s March-quarter FY26 update missed our forecasts, with portfolio underperformance the primary driver although this was largely expected by the market. Fund inflows were robust at $9.4 billion in the quarter, as momentum continued despite market wobbles, even if those wobbles had a negative impact of $8.6 billion, leaving growth in total funds under management (FUM) up just 0.4% in the quarter.

Of the $59.6 billion of FUM where performance fees can be earned, around 60% of these were at their high-water mark (HWM) threshold where fees can be charged, while another 22% of FUM is within 2% of their HWM.

But it wasn’t all bad news. Ord Minnett picked out a few positives. It adds:

Flows into the highly attractive core global equities funds, including the Life Cycle and Plato offerings, and alternative fixed-income products, including the Coolabah offerings, were described as “robust”. Pinnacle said there was “strong demand” for these products, including both fundamental core and systematic core portfolios, and also noted that AI was a “central theme” across all asset classes.

The fund manager has taken the opportunity to acquire a further 6.8% stake in Metrics for $100.5 million from a retiring co-founder of the business, a strong endorsement by Pinnacle management in the performance and growth outlook for the business. In addition, the Advantage Partners affiliate has raised a Japan Buyout fund, with an expected size of $2.5–3.0 billion, which closed in April.

Buy recommendation

According to the note, Ord Minnett has put a buy rating and $22.10 price target on the ASX 200 dividend stock.

Based on its current share price of $15.56, this implies potential upside of 42% for investors over the next 12 months.

In addition, the broker is forecasting fully franked dividends of 60 cents per share in FY 2026 and then 77 cents per share in FY 2027. This equates to dividend yields of 3.9% and 4.9%, respectively.

The post Why Ord Minnett rates this ASX 200 dividend stock as a buy appeared first on The Motley Fool Australia.

More reading

• A 7% yield but down 36%! Is it time for me to buy this ASX share to earn passive income?
• 3 ASX 200 shares that brokers are recommending as buys in May
• Morgans says these ASX dividend shares are buys
• Here are the top 10 ASX 200 shares today
• Pinnacle Investment Management increases Metrics Credit stake in $100.5 million deal

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.