If you're looking for a combination of capital gains and attractive dividend yields, then look no further.
That's because analysts at Bell Potter have just named an ASX 300 share that offers both as a buy.
Buy this ASX 300 share
The share in question is agribusiness company Elders Ltd (ASX: ELD).
According to the note, the broker believes that the good times are almost here for the ASX 300 share. It commented:
Our Buy rating is unchanged. Since reporting FY23 results in Nov'23 soil moisture profiles in key summer cropping regions have improved (with NOAA long range forecasts shifting to ENSO neutral by April-June) and livestock prices have firmed, with volumes generally continuing to demonstrate high single-to-double digit YOY gains in both cattle and sheep/lamb markets.
While the broker doesn't expect this to lead to earnings growth in FY 2024, it is forecasting strong growth in the next two financial years.
It expects earnings per share to fall 13% this year before rebounding 22% in FY 2025 and then 11.5% in FY 2026.
Big returns ahead
The note reveals that Bell Potter has retained its buy rating on Elders' shares and increased its price target to $9.50 (from $8.35).
Based on where this ASX 300 share currently trades, this implies potential upside of more than 13% for investors over the next 12 months.
In addition, the broker is forecasting a 34 cents per share partially franked dividend in FY 2024. This represents a 4.1% dividend yield at current prices, which boosts the total potential return comfortably beyond 17%.
And thanks to that forecast earnings rebound in FY 2025, the broker expects a dividend increase to 41 cents per share next year. This equates to a generous 4.9% dividend yield for investors to look forward to receiving.
