If you are on the hunt for some ASX dividend shares to buy this month, it could be worth checking out the two below that Bell Potter has named as top picks for income investors in June.
Here's what the broker is saying about them:
Rural Funds Group (ASX: RFF)
Bell Potter thinks that this agricultural property company could be an ASX dividend share to buy this month.
It highlights that its shares are trading at an abnormally large discount to their net asset value. It feels this is excessive and has created a compelling buying opportunity for income investors. The broker said:
RFF trades at a historical high discount to its market NAV per unit ($2.78 pu) at ~28%. While we are in general seeing large discounts to NAV in ASX listed farming and water assets to market NAV, the discount that RFF is trading appears excessive and we are seeing a valuable opportunity in RFF. While the timing of that value discount closing is difficult to call, investors are likely to be rewarded with a ~6% yield to hold the position until such a time as the asset class rerates. Furthermore, RFF aims to achieve income growth through productivity improvements, conversion of assets to higher and better use along with rental indexation which is built into all of its contracts with its tenants.
Bell Potter has a buy rating and $2.40 price target on Rural Funds' shares.
As for income, it is forecasting dividends per share of 11.7 cents in FY 2024 and FY 2025. Based on its current share price of $2.02, this will mean yields of 5.8% for investors.
SRG Global Ltd (ASX: SRG)
Bell Potter also thinks that SRG Global would be one of the best ASX dividend shares to buy this month.
It is a diversified industrial services group that provides multidisciplinary construction, maintenance, production drilling and geotechnical services The broker believes that SRG will be a beneficiary of accelerating growth in iron ore and gold production volumes over the next five years. It commented:
SRG's short-to-medium term outlook is reinforced by Government-stimulated construction activity in the Infrastructure and Non-Residential sectors and increased development and sustaining capital expenditures in the Resources industry. The resulting expansion in infrastructure bases across these sectors will likely support increased demand for asset care and maintenance in the medium to long-term. We anticipate Mining Services will be a beneficiary of accelerating growth in iron ore and gold production volumes over the next five years.
Bell Potter has a buy rating and $1.30 price target on its shares.
In respect to dividends, the broker is forecasting fully franked dividends of 4.7 cents in FY 2024 and then 6.7 cents in FY 2025. Based on its current share price of 89 cents, this will mean dividend yields of 5.3% and 7.5%, respectively.
