Investors that are on the lookout for ASX dividend shares to buy, might want to hear what Bell Potter is saying about the two listed below.
It has named them as buys on its favoured list and is forecasting some good dividend yields in the near term. Here's what you need to know about these picks:
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Aspen Group Limited (ASX: APZ)
The first ASX dividend share that Bell Potter is tipping as a buy is Aspen Group. It is a leading provider of quality affordable accommodation across residential, land lease, and holiday park communities.
The broker likes the company due to its strong track record, high inside ownership, and positive outlook. It commented:
The business has a sector agnostic, high ROE focus on sub-sectors that are nonfungible and repeatable over time. APZ co-CEO's hold a large combined stake in the business (c.8%), the company has delivered 20% EPS growth last 5 years, and based on guidance (notwithstanding 11% higher SOI) is expecting to grow 9% in FY25. Still, the valuation is undemanding (7% discount to NTA; 13.5x 1yr forward PE vs. 15.1x sector average) and we think an improving residential macro back drop will only further boost APZ as it works towards ASX300 inclusion in time.
As for dividends, Bell Potter is forecasting dividends per share of 9.5 cents in FY 2025 and then 10.3 cents in FY 2026. Based on the current Aspen share price of $2.11, this will mean dividend yields of 4.3% and 4.8%, respectively.
The broker has a buy rating and $2.40 price target on its shares.
Rural Funds Group (ASX: RFF)
A second ASX dividend share that could be a best buy according to Bell Potter is Rural Funds.
It is a property company that owns a portfolio of assets across a number of agricultural industries such as orchards, vineyards, water entitlements, cropping, and cattle farms.
Bell Potter is a fan of the company. Its analysts see a lot of value in its shares at current levels and expect attractive dividend yields. They 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.
The broker is forecasting dividends per share of 11.7 cents in FY 2025 and 12.2 cents in FY 2026. Based on the current Rural Funds share price of $2.00, this will mean yields of 5.85% and 6.1%, respectively.
Bell Potter has a buy rating and $2.50 price target on its shares.
