1 ASX dividend stock down 55% to buy right now

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has been well and truly out of form over the last 12 months.

During this time, the ASX dividend stock has lost 55% of its value.

This has been driven by management’s failed execution of its response to inflationary pressures.

And while its performance and those declines are very disappointing, it could have created a buying opportunity for income investors.

An ASX dividend stock to buy

A number of brokers believe that Domino’s shares are in the buy zone right now.

For example, Ord Minnett currently has an accumulate rating and lofty $68.00 price target on the company’s shares. This implies over 70% upside for investors over the next 12 months.

In addition, the broker sees the pizza chain operator as an attractive option for income investors. It is forecasting dividends per share of $1.12 in FY 2024 and then $1.70 in FY 2025.

Based on the current Domino’s share price of $39.60, this will mean yields of 2.8% and 4.3%, respectively.

Who else is bullish?

Over at Macquarie, its analysts are positive, but expect it to take longer for Domino’s dividend to recover to former glories.

Macquarie has an outperform rating and $48.00 price target on the ASX dividend stock, which suggests upside of over 20% from current levels.

As for income, the broker has pencilled in dividends per share of $1.03 in FY 2024 and then $1.16 in FY 2025. This would mean dividend yields of 2.6% and 2.9%, respectively, for investors.

All in all, these analysts appear to believe that Domino’s beaten down shares could be a great option for income investors looking for some bargain buys.

The post 1 ASX dividend stock down 55% to buy right now appeared first on The Motley Fool Australia.

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More reading

• 2 ‘oversold’ ASX shares to get onto right now at ‘attractive entry levels’
• 6 oversold ASX shares to buy in February 2024
• Chair says his $2.8 billion Domino’s stock meltdown ‘doesn’t matter’
• These ASX 200 shares could rise 30% to 50%
• As the Domino’s share price continues to struggle, is it a no-brainer buy?

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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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