2 high-yield ASX dividend stocks you can buy and hold for a decade

MotleyFool
02-28

There are a lot of options for income investors to choose from on the Australian share market.

For those that are looking for buy and hold options, the two high-yield ASX dividend stocks listed below could be top picks.

Here's what analysts are saying about these stocks:

Accent Group Ltd (ASX: AX1)

The first ASX dividend stock for investors to consider as a buy and hold option is Accent Group. It is a leading retailer in Australian leisure footwear, commanding a 30% share of the $3 billion market.

The company is also making strategic moves into the athleisure market, leveraging its own brands and exclusive partnerships to drive further growth. All in all, this bodes well for the long term.

The team at Bell Potter is bullish on Accent. Commenting on the retailer, its analysts said:

We continue to view growth catalysts ahead for AX1 as Australia's market leader in footwear retailing, in core/new brands & regions, vertical brand strategy (~8% on owned sales) in addition to the sizable store roll-out opportunity of the global Sports Direct banner in Australia (as per prev. research) with the strategic investment by FRAS in AX1 (~15%) and conclusion of negotiations expected in 2H.

In respect to income, Bell Potter is forecasting fully franked dividends of 10.2 cents per share in FY 2025 and 12.7 cents per share in FY 2026. Based on its latest share price of $2.04, this equates to dividend yields of 5% and 6.2%, respectively.

The broker has a buy rating and $2.60 price target on Accent's shares.

GQG Partners Inc (ASX: GQG)

Another ASX dividend stock to consider as a long term investment is GQG Partners.

It is a global investment boutique focused on managing active equity portfolios. At the last count, it managed US$160 billion for investors that include many large pension funds, sovereign funds, wealth management firms, and other financial institutions around the world.

Goldman Sachs rates the company highly. Commenting on its buy recommendation, the broker said:

GQG is a global asset manager with an active equity focus. We are Buy rated on GQG because: 1) Net flow trajectory has been very strong (but recent softness) 2) Medium and long term relative performance strong 3) Attractive valuation vs. peers in context of strong earnings growth. 4) Impacts from Adani entity investments appear manageable.

As for those all-important dividends, Goldman is forecasting dividends per share of 15 US cents (24 Australian cents) in FY 2025 and then 17 US cents (27.2 Australian cents) in FY 2026. Based on its current share price of $2.32 this would mean massive dividend yields of 10.3% and 11.7%, respectively.

Goldman has a buy rating and $3.20 price target on its shares.

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