Looking for a promising S&P/ASX 200 Index (ASX: XJO) dividend to bring in some handy extra passive income and potential capital gains?
Then you may want to have a look into REA Group Ltd (ASX: REA).
That’s according to Lazarus Capital Partners’ Tom Fairchild, who recently issued a buy recommendation on the online property listings company (courtesy of The Bull).
Less than two months ago, on 23 June, REA shares ended the day at a one year closing low of $131.52. In morning trade today, shares in the ASX 200 dividend stock are changing hands for $176.87 apiece.
That sees the REA share price up 34.5% since those June lows. While the REA share price remains down 32.4% since this time last year, Fairchild believes the past two months’ rebound has further to run.
Here’s why.
Should I buy this ASX 200 dividend stock today?
“REA is a multi-national digital advertising group specialising in property,” Fairchild said.
Citing the first reason he’s bullish on the ASX 200 dividend stock here noted:
Revenue from core operations of $1.793 billion in full year 2026 was up 7% on the prior corresponding period. Net profit after tax from core operations of $650 million was up 15%. Earnings per share of $4.93 was up 15%
Then there’s the promising passive income trend.
“The final fully franked dividend of $1.73 was up 25%,” Fairchild said.
REA declared that final dividend on 6 August, following the release of its FY 2026 results.
If you want to score the passive income payout, you’ll need to own REA shares at market close on 26 August. REA trades ex-dividend on 27 August. You can then expect to see that dividend hit your bank account on 11 September.
If we add in the interim full franked REA dividend of $1.24 per share, paid on 18 March, the full year payout equates to $2.97 a share, up 20% from the FY 2025 dividend payments. At the current REA share price, that sees this ASX 200 dividend stock trading at a fully franked yield (partly trailing, party pending) of 1.7%. Taking those franking credits into account, that works out to a grossed-up yield of 2.4%.
Which bring us to the third reason Fairchild issued a buy recommendation on REA shares.
He concluded, “Investors responded positively after the full year result was released on August 6. But we believe the company still has ample room to improve its performance from here.”
The post 3 reasons to buy this rebounding ASX 200 dividend stock today appeared first on The Motley Fool Australia.
Should you invest $1,000 in REA Group right now?
Before you buy REA Group 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 REA Group 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 1 August 2026
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.