1 ASX dividend stock down 46% I'd buy right now

The Dexus (ASX: DXS) share price has fallen by 46% from where it was in April 2022 and it has dropped 22% from October 2025. When an ASX dividend stock falls that far, I get excited.

Dexus describes itself as a fully integrated real asset group, managing a high-quality Australasian and infrastructure portfolio valued at $51.5 billion. Its platform includes its listed portfolio and funds management business, which includes direct and indirect ownership of office, industrial, healthcare, infrastructure, alternatives and other investments.

In short, it's one of the country's largest property fund managers, with significant ownership of some of the properties.

Why I think this is a good time to invest in the ASX dividend stock

The business is heavily exposed to interest rate movements. Higher interest rates usually act as a headwind for both property valuations and clients' willingness to allocate new money to property investments.

I don't think economic conditions will stay like this forever, so it could be smart to see this as an opportunity to buy the stock while it's cheap.

Not only is the business down heavily from its former highs, but it's also trading at a large discount to its net tangible assets (NTA). The business reported NTA per security of $8.95 at 31 December 2025, so the current unit price appears to be trading at a large discount.

Plus, the business is still generating strong rental profits. Its guidance for FY26 was for adjusted funds from operations (AFFO) – net rental profit – of between 44.5 cents to 45.5 cents per security. At the time of writing, that suggests it's trading at just 13x FY26's forecast rental profit.

Big distribution yield

It may be hard to precisely value Dexus' properties that aren't up for sale.

But, a true judge of the underlying value is the rental profit and the distribution it produces.

The business decided on an annual distribution of 37 cents per security in the 2026 financial year. That translates into a distribution yield of 6.2%. If its distribution payout ratio was 100%, the yield for FY26 would be at least 7.4%.

However, I'm glad the ASX dividend stock is not paying out all of its profit each year because it means it's investing retained earnings to improve the business, boost earnings, and/or strengthen the balance sheet.

Having said all of that, investors may be looking for ASX share ideas outside of the property sector, so keep an eye out for my other ideas.

The post 1 ASX dividend stock down 46% I'd buy right now appeared first on The Motley Fool Australia.

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.

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