I love buying ASX dividend stocks after they’ve fallen because we’re getting much better bang for our buck.

Not only do we get to buy a business at a lower price-earnings (P/E) ratio, but it also means the dividend yield is larger.

For example, if a business has a dividend yield of 4% and then the share price drops 10%, the yield becomes 4.4%. With the ASX dividend stock Propel Funeral Partners Ltd (ASX: PFP), we’re talking about a much larger fall.

As the chart below shows, the Propel share price has fallen by around 34% since the start of 2026. I think this is a good time to invest in the funeral provider because of a few different reasons.

Opportunistic time to buy

One of the most important things about investing is that the price we pay has a big impact on the size of the returns generated.

There are a number of headwinds facing the Propel share price right now, which is why it’s so much cheaper. Higher interest rates may have prompted investors to consider other safe assets, such as cash, term deposits, and interest rate-linked bonds, hurting the Propel share price – this effect could reverse if/when interest rates start to come down again, possibly next year.

Plus, the ASX dividend stock is expecting FY26 revenue growth to be between flat to 1.9%. This seems like a relatively low level of revenue growth for the year, and I’m expecting more in future financial years, so this could be an opportunistic time to buy as the ageing demographic tailwinds become stronger.

Long-term growth trend

According to Propel, the industry is expected to see volume growth in the coming years.

The number of deaths in Australia is expected to increase by an average of 2.9% per year between 2026 and 2035 and then 2.4% per year between 2036 and 2045. That compares to a growth rate of 1.1% between 1990 and 2025.

As the saying goes, there are only two things certain in life – death and taxes – and we can’t invest in the Australian Taxation Office.

There is a certain number of deaths each year, which means the business has a certain level of earnings each year, making it very defensive.

According to the forecast on CMC Invest, the business is now valued at 22 times FY26’s estimated earnings. I think this looks reasonable for the long-term growth potential.

Good dividend yield

The ASX dividend stock is delivering a solid level of dividends for investors, which could grow in the coming years.

Based on the forecast on CMC Invest, the potential grossed-up dividend yield for FY26 is 5.5% (including franking credits), and this yield could grow to 6.2% by FY28 (including franking credits).

That’s not the biggest yield on the ASX, but it is a good level of payouts, and it could deliver payout growth in the years ahead.

The post 1 ASX dividend stock down 34% I’d buy right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners. 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.

Once a week, I like to look at ASIC’s short position report to find out which ASX shares are being targeted by short sellers.

That’s because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top ten most shorted ASX shares

• Lotus Resources Ltd (ASX: LOT) is still Australia’s most shorted share with short interest of 22.8%. This uranium developer was due to return from a lengthy suspension last week with an update on its Kayelekera Project. Instead, the company requested more time as it prepares a funding package.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease again to 13.8%. Short sellers appear to be doubting this pizza chain operator’s turnaround plans.
• DroneShield Ltd (ASX: DRO) has short interest of 12.8%, which is up sharply since last week. This counter-drone technology company’s shares could have been targeted due to a recent ASIC investigation into an announcement and insider share sales.
• 4DMedical Ltd (ASX: 4DX) has seen its short interest rise to 12%. This could be due to valuation concerns, with the medical technology company’s shares trading on sky-high multiples. 
• Flight Centre Travel Group Ltd (ASX: FLT) has 11.8% of its shares held short, which is up week on week. There are concerns this travel agent giant could be negatively impacted by the Middle East conflict. 
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 11.7%, which is down slightly again week on week. Short sellers appear to believe the radiopharmaceuticals company could continue to struggle gaining US FDA approvals.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.7%, which is down week on week again. This uranium miner’s production outlook beyond 2027 is uncertain. An update is  due by the end of August.
• CAR Group Limited (ASX: CAR) has short interest of 11.6%, which is up week on week. There may be fears that higher interest rates could slow the growth of the automotive market and listing volumes.
• Paladin Energy Ltd (ASX: PDN) has 11.5% of its shares held short, which is up week on week. It is another uranium producer that short sellers have been targeting.
• Elders Ltd (ASX: ELD) has entered the top ten with short interest of 10.75%. This agribusiness company has underperformed the market’s expectations this year.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, DroneShield, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended CAR Group Ltd, Domino’s Pizza Enterprises, Flight Centre Travel Group, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woolworths Group Ltd (ASX: WOW) shares could be an increasingly compelling pick for dividends over the next few years.

Woolworths is best known for its supermarket business in Australia – it’s the biggest operator in the country.

But, it owns a number of other businesses including the New Zealand supermarket Countdown, the business food supplier PFD, BIG W, Petstock and more. It’s better diversified than some investors may think it is.

After everything that has happened over the last few years, it’s good to look at the potential dividend income from the ASX defensive share. The company may be able to provide steadily rising payouts for investors.

FY26

The 2026 financial year has already finished, but we haven’t yet seen the FY26 result or the annual/final dividend.

The latest update we have from the business is the FY26 third-quarter update. Total third-quarter sales were up 4.5% to $18.1 billion. Within that, Australian food grew sales by 5.9% to $13.8 billion, Australian business-to-business (B2B) sales grew 4.9%, New Zealand food increased 1.4% in New Zealand dollar terms and ‘W Living’ sales rose 4.8%.

Sales growth does not automatically turn into profit growth because it depends on what’s happening with the profit margin. Woolworths’ margins will be revealed with the full-year result next month.

Underlying earnings growth can turn into a rising dividend, whether that’s this year or next year.

In the FY26 half-year result, the company grew its interim dividend by 15.4% to 45 cents per share. The projection on Commsec suggests the business could hike its annual dividend per share to 99.5 cents per share in FY26.

At the time of writing, that translates into a grossed-up dividend yield of 3.6%, including franking credits.

FY27

We’re already in the 2027 financial year, and investors won’t have too long to wait until the next dividends come along.

Woolworths continues to work on becoming more efficient and resilient, while providing customers with “lower prices, better experiences and greater convenience”, according to the Woolworths CEO Amanda Bardwell.

It’ll be interesting to see how much Woolworths can grow its earnings in FY27, following the Middle East disruption. In FY26, its Australian food operating earnings (EBIT) growth is expected to be in the “mid to high single-digit range”.

The projection on Commsec suggests Woolworths’ earnings per share (EPS) and dividend per share could both rise by more than 10%.

The FY27 dividend per share is forecast to increase to $1.13, translating to a grossed-up dividend yield of 4.1%, including franking credits.

FY28

The 2028 financial year dividend could increase by more than 10% again in the 2028 financial year.

The FY28 payout could translate into a grossed-up dividend yield of 4.7%, including franking credits. If the company’s dividend does increase to that level, then it’ll be a fairly compelling pick for passive income.

But, investors may be looking for investments that can grow earnings even faster than what Woolworths can deliver.

The post Here’s the dividend forecast out to 2028 for Woolworths shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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.