DMP Charts, page-284

Domino's Pizza Enterprises Ltd (ASX: DMP)

Another top ASX dividend share that could be a great buy and hold option is pizza chain operator Domino's Pizza.

Its shares have been under significant pressure recently due to some poor decisions by management. But with a new strategy in place and a change of CEO, things are looking brighter.

Goldman Sachs thinks that this could make it a great time to pick up shares for the long-term and is forecasting some growing dividend yields. Commenting on the company, the broker said:

We have a Buy rating on the stock, as we believe management's focus on franchisee profitability through closure of 80/20-30 locations in Japan/France will help to material improve the quality of the network and help franchisee profitability. With COGs inflation moderating and the company focusing on execution of quality stores, we expect that store growth will be restored following a digestion period. DMP is trading at an undemanding PE valuation relative to its LT average and as such we believe the stock now offers an attractive entry point.

As for income, the broker is forecasting partially franked dividends of $1.13 per share in FY 2025, $1.36 per share in FY 2026, and then $1.62 per share in FY 2027. Based on the current Domino's share price of $29.47, this equates to dividend yields of 3.8%, 4.6%, and 5.5%, respectively.

Goldman has a buy rating and $39.10 price target on its shares.