As the Australian Stock Exchange (ASX) continues to experience fluctuations, savvy investors are on the lookout for opportunities to buy into promising dividend stocks at reduced prices. Among the stocks catching the eye this month are Pinnacle Investment Management Group Ltd, Accent Group Ltd, and Rural Funds Group. These companies not only offer attractive dividend yields but also show strong potential for earnings and capital growth.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Pinnacle Investment Management Group Ltd has seen its share price decline by nearly 30% since August 2025, a drop that presents an enticing opportunity for investors. The company is intricately linked to the performance of share markets, given its investment in a portfolio of funds management businesses, known as affiliates.
Pinnacle’s business model involves taking investment stakes in these affiliates and supporting their growth through various services, including fund administration, legal and compliance support, and technology infrastructure. Notably, Pinnacle has stakes in renowned fund managers such as Hyperion, Plato, and Firetrail, among others.
In the fiscal year 2025, Pinnacle reported that 91% of its affiliate strategies outperformed over a five-year period, with 35% outperforming by more than 5% annually. This success facilitated a 63% increase in total affiliate funds under management (FUM) to $179.4 billion, boosting Pinnacle’s net profit after tax by 49% and leading to a 43% rise in dividends per share to 60 cents.
“If the dividend were maintained in FY26, it would result in a grossed-up dividend yield of approximately 4.5%, including franking credits.”
Accent Group Ltd (ASX: AX1)
Accent Group Ltd, a prominent player in the footwear retail sector, has seen its value decline by 30% since June 2025. Known for distributing popular brands like Ugg, Skechers, and Vans, Accent also owns brands such as The Athlete’s Foot and Stylerunner. The company’s recent agreement to open Sports Direct stores locally and operate an online store marks a significant growth opportunity.
The local sports market, valued in billions, offers a substantial opportunity for Accent to expand its footprint. Through its partnership with Frasers Group, Accent gains access to new brands such as Lonsdale and Everlast, potentially opening dozens of Sports Direct stores in the coming years.
“Projections from Commsec suggest a grossed-up dividend yield of around 8.5% in FY26, including franking credits.”
Rural Funds Group (ASX: RFF)
Rural Funds Group, a real estate investment trust (REIT), owns a diverse portfolio of farms across Australia, including cattle, vineyards, and almond plantations. The company is currently trading at a significant discount of nearly 40% to its adjusted net asset value (NAV) from June 2025, presenting a potentially undervalued investment opportunity.
This discount has enabled Rural Funds to offer an appealing distribution yield. The company anticipates paying a distribution that translates into a forward yield of 6.2%, making it an attractive option for income-focused investors.
Implications and Future Outlook
The current market volatility has opened a window for investors to acquire shares in these promising ASX dividend stocks at more favorable prices. With Pinnacle’s robust affiliate performance, Accent’s strategic expansion in the sports retail market, and Rural Funds’ undervaluation, these companies present potential for both income and growth.
As investors consider these opportunities, it will be crucial to monitor market conditions and company performance to ensure that valuations remain attractive. With the potential for significant returns, these stocks could be valuable additions to a diversified investment portfolio.
