The big four banks offer investors good dividend yields. However, most analysts agree that upside is limited from current levels after strong gains over the past 12 months.
But don't worry, because analysts expect great yields and big upside from the ASX dividend shares listed below. Here's what they are saying about them:
Regal Partners Ltd (ASX: RPL)
The first ASX dividend share with potential to generate big returns is Regal Partners.
It is an alternative investment manager that has been on an acquisition spree in recent times. This includes tabling an offer for Platinum Asset Management Ltd (ASX: PTM) last week.
Bell Potter thinks the company's shares are dirt cheap. It has a buy rating and $4.97 price target on them. Based on its current share price of $3.35, this implies potential upside of 48% for investors over the next 12 months.
Commenting on its bullish view, the broker said:
We continue to favour RPL, given its strong organic & inorganic growth potential, and entrepreneurial culture. In the last six months, and following the recent acquisition of PM Capital and Taurus (50%), the firm has shown an acceleration of inflows, strong investment performance (which will give rise to performance fees) and success in marketing new funds. We feel this strong performance is not reflected in the share price and see considerable upside.
What about dividends? Well, Bell Potter is forecasting fully franked dividends per share of 19.5 cents in FY 2025 and 22.1 cents in FY 2026. This would mean dividend yields of 5.8% and 6.6%, respectively.
Woodside Energy Group Ltd (ASX: WDS)
Analysts at Morgans think that big returns could be on offer from this energy giant's shares.
The broker has an add rating and $33.00 price target on the ASX dividend share. This suggests that upside of 33% is possible from current levels.
Morgans thinks that its shares are being undervalued by the market. The broker recently said:
A tier 1 upstream oil and gas operator with high-quality earnings that we see as likely to continue pursuing an opportunistic acquisition strategy. WDS's share price has been under pressure in recent months from a combination of oil price volatility and approval issues at Scarborough, its key offshore growth project. With both of those factors now having moderated, with the pullback in oil prices moderating and work at Scarborough back underway, we see now as a good time to add to positions.
As for dividends, the broker is forecasting fully franked dividends of $1.93 per share in FY 2024 and $1.61 per share in FY 2025. Based on its current share price of $24.77, this will mean yields of 7.8% and then 6.5%.
