The team at Bell Potter has been scouring the market for ASX dividend shares to buy in recent weeks.
Two shares that were identified as a buys are listed below. Here's what the broker is saying about them:
Image source: Getty Images
Dexus Convenience Retail REIT (ASX: DXC)
The first ASX dividend share that Bell Potter rates as a buy is Dexus Convenience Retail REIT.
The broker believes the convenience retail and service station property company's shares are cheap at current levels. It explains:
DXC is a convenience retail / service station REIT with a network of over 100 assets across the country predominantly leased to institutional and strong covenant tenants including Chevron, Viva, EG, Mobil and 7-Eleven. DXC trades at a circa 34% discount to stated NTA which we think is overly punitive for a sub-sector where there is clear price discovery (double digit number of asset sales for DXC at a blended 2-3% discount to book, and 65 market transactions in FY23), and investors for commercial real estate have a clear preference for smaller cheque size assets.
In respect to income, the broker is forecasting dividends per share of 20.9 cents in FY 2024 and 20.5 cents in FY 2025. Based on its current share price of $2.62, this equates to yields of 8% and 7.8%, respectively.
Bell Potter has a buy rating and $2.85 price target on its shares.
Elders Ltd (ASX: ELD)
Another ASX dividend share that has been given the thumbs up by Bell Potter is agribusiness company Elders.
The broker was pleased to see that operating conditions have been more favourable for Elders since the release of its FY 2023 results. 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.
Bell Potter expects this to support the payment of dividends of 34 cents per share in FY 2024 and 41 cents per share in FY 2025. Based on the current Elders share price of $8.82, this will mean yields of 3.85% and 4.65%, respectively.
Its analysts have a buy rating and $9.50 price target on the company's shares.
