Are you on the lookout for ASX dividend stocks to buy for your income portfolio this month?
If you are, it could be worth looking at the two named below that Bell Potter has on its favoured list.
Here's why it thinks they are among the best to buy on the Australian share market right now:
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Nickel Industries Ltd (ASX: NIC)
If you don't mind investing in the mining sector, then nickel producer Nickel Industries could be an ASX dividend stock to buy.
Analysts at Bell Potter think that the company's shares are dirt cheap at current levels. Particularly given its positive growth outlook and attractive dividend yield. It said:
NIC is the only pure-play producer of scale on the ASX providing exposure to the nickel price, with earnings diversified across Type 1 and Type 2 nickel. Its aggressive growth profile is fully funded, it is currently moving through the peak CAPEX phase which we forecast to drive strong earnings growth in CY25 and CY26. NIC has long-life assets with demonstrated ability to make money through the nickel price cycle while also sustaining a supportive (unfranked) dividend which we forecast to grow. At these levels it trades on undemanding valuation multiples.
The broker expects 5 cents per share dividends in both FY 2024 and FY 2025. Based on its current share price of 76 cents, this would mean dividend yields of 6.6%.
Bell Potter has a buy rating and $1.47 price target on its shares.
Transurban Group (ASX: TCL)
Bell Potter also sees toll road operator Transurban as an ASX dividend stock to buy this month.
It likes the company's low risk cash flow and significant growth pipeline. The broker explains:
We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group's current pipeline of growth projects is $3.3 billion (TCL's share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.
Bell Potter is forecasting dividends per share of 65 cents in FY 2025 and 72 cents in FY 2026. Based on its current share price of $13.67, this will mean yields of 4.75% and 5.25%, respectively.
The broker has a buy rating and $14.20 price target on Transurban's shares.
