The Australian share market traditionally trades with an average dividend yield of 4%.
While this is a great yield and comparable to what you might find with savings accounts, you don't have to settle for that.
Not when there are some ASX dividend stocks out there offering significantly larger yields.
In addition, one of these stocks has been tipped to grow its dividend in the coming years, meaning bigger and bigger yields could be coming.
So much so, the ASX dividend stock in this article is forecast by one leading broker to provide a yield as large as 8% in 2026.
The stock in question is Accent Group Ltd (ASX: AX1).
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What is Accent?
In case you're not familiar with Accent Group, let's take a little look at what it does.
Accent is a footwear retailer and wholesaler which owns and operates a number of footwear businesses in the performance, comfort, and active lifestyle sectors.
This includes many store brands that readers will be familiar with such as The Athlete's Foot, Platypus, HypeDC, and Stylerunner. In addition, it has the local rights to global brands such as Skechers, Vans, Timberland, Reebok, and Hoka.
Accent also has an emerging presence in youth apparel following the acquisition of Glue Store in 2021.
Big yields expected from this ASX dividend stock
Thanks to the strength of these brands and favourable consumer trends, Bell Potter believes that Accent is well-positioned to reward shareholders with some very attractive dividends in the coming years.
For example, in FY 2024, the broker is forecasting the company to pay a fully franked 13 cents per share dividend. Based on its current share price of $1.98, this will mean a 6.6% dividend yield for investors.
Looking ahead, Bell Potter believes the ASX stock will increase its dividend to 14.6 cents per share in FY 2025. This equates to a fully franked 7.4% dividend yield for anyone buying its shares at current levels.
This trend is expected to continue in FY 2026, with Bell Potter forecasting an increase to 16.4 cents per share. This will mean a very large 8.3% dividend yield for income investors to look forward to receiving that year.
But wait, there's more! Bell Potter isn't just expecting outsized dividend yields. It also expects Accent shares to deliver big capital gains over the next 12 months.
The broker has a buy rating and $2.50 price target on them. This implies potential upside of 26% for investors from current levels.
