Bell Potter says these ASX dividend shares are top buys this month

The broker says these shares are in the buy zone right now.

| More on:
Excited woman holding out $100 notes, symbolising dividends.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are plenty of ASX dividend shares to choose from on the local share market.

But which ones could be in the buy zone right now?

Two that analysts at Bell Potter are very positive on are listed below. Here's why they are bullish on these names:

Rural Funds Group (ASX: RFF)

The first ASX dividend share that could be a top buy is Rural Funds. It owns a portfolio of high-quality agricultural assets. This includes across industries such as orchards, vineyards, water entitlements, cropping, and cattle farms.

Bell Potter highlights the significant discount that it trades at compared to historical averages and its attractive dividend yield. It said:

RFF trades at a historical high discount to its market NAV per unit ($2.78 pu) at ~28% [now 25.5%]. 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.

The broker expects dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.07, this will mean yields of 5.85% for investors.

Bell Potter currently has a buy rating and $2.40 price target on its shares.

SRG Global Ltd (ASX: SRG)

Bell Potter says that SRG Global could be an ASX dividend share to buy right now.

It is a diversified industrial services group that provides multidisciplinary construction, maintenance, production drilling and geotechnical services.

The broker believes SRG Global is well-positioned to benefit from increasing construction and mining services activity. It said:

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 is forecasting the company to pay shareholders 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 84 cents, this will mean dividend yields of 5.6% and 8%, respectively.

It has a buy rating and $1.30 price target on its shares.

Motley Fool contributor James Mickleboro 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 positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Woman with $50 notes in her hand thinking, symbolising dividends.
ETFs

Does the VanEck Wide Moat ETF really have an 8% dividend yield?

Is an 8% dividend yield too good to be true?

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

5 ASX dividend shares to buy next week

Brokers have put buy ratings on these stocks. Here's what they are forecasting.

Read more »

A woman in a bright yellow jumper looks happily at her yellow piggy bank representing bank dividends and in particular the CBA dividend
Dividend Investing

Forget CBA and buy these ASX dividend stocks

Let's see why analysts think these shares could be buys for income investors.

Read more »

A happy older couple relax in a hammock together as they think about enjoying life with a passive income stream.
Dividend Investing

2 bargain Australian shares with dividend yields higher than 6%

Looking for a bargain but can't give up on dividend payments?

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Dividend Investing

Buy BHP and these ASX dividend shares

Here's why the mining giant and these shares have been named as buys by brokers.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
Dividend Investing

Analysts say these ASX dividend stocks with ~7% yields are top buys

Big dividend yields could be coming for owners of these shares.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Dividend Investing

3 strong ASX dividend stocks for income investors to buy

Analysts have good things to say about these dividend stocks.

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

Australian dividend machines: 3 ASX shares that generate reliable passive income

Analysts think these income stocks are in the buy zone.

Read more »