COH Re-Entry Setup: High Dividend Play With Upside Potential

Cochlear (ASX: COH) continues to stand out as one of the premier dividend stocks on the ASX, currently paying A$2.15 per share semi-annually (A$4.30 annually). With the next ex-dividend date falling on 18 September 2025, investors who accumulate positions within the coming weeks can secure strong passive income while also positioning for potential capital growth. This dividend flow adds a layer of consistency to the portfolio, making COH a defensive yet opportunistic play in uncertain markets. Unlike many high-growth names, COH offers a blend of stability and upside potential, which is attractive for investors aiming to compound both yield and price appreciation.

From a technical perspective, COH has cleanly respected the weekly Fair Value Gap (FVG), offering a well-defined buy zone between A$276.05 – A$291.70. This zone aligns with a retracement into structural demand, giving confluence for a high-probability long setup. Should price continue to hold above this level, the next logical upside targets sit around A$350+, with intermediate liquidity resting at A$322.75. Price has built significant buyside liquidity pools above prior highs, which the market tends to seek in order to rebalance inefficiencies. For dividend-focused investors, this setup is especially compelling — not only is there steady income from the semi-annual payout, but also the possibility of capturing 30%+ capital growth from current levels. COH therefore provides a dual benefit: reliable cash returns and strong technical momentum that could fuel a multi-month rally.