Buy BHP and this ASX dividend share: Analysts

What are analysts saying about these income options? Let's dig deeper.

| More on:

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

The good news for income investors is that there are plenty of ASX dividend shares to choose from on the local market.

But which ones could be in the buy zone next week?

Two that analysts are tipping as top buys are listed below. Here's what they are saying about them:

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements

Image source: Getty Images

BHP Group Ltd (ASX: BHP)

This mining giant's shares were on fire last week after the Chinese government announced new stimulus measures to support economic growth.

The good news is that Goldman Sachs doesn't think that it's too late to invest in the Big Australian.

Its analysts recently stated that they think BHP's shares are attractively priced. They said:

BHP is currently trading at ~6.0x NTM EBITDA (25-yr average EV/EBITDA of 6.6x), a slight premium to RIO on ~5.5x; and at 0.9xNAV vs RIO at 0.8xNAV. Over the last 10 years, BHP has traded at a ~0.5x premium to global mining peers. We believe this premium can be partly maintained due to ongoing superior margins and operating performance (particularly in Pilbara iron ore where BHP maintains superior FCF/t vs. peers).

As for dividends, Goldman expects fully franked dividends per share of US$1.16 (A$1.69) in FY 2025 and then US$1.13 (A$1.64) in FY 2026. Based on its current share price of $44.74, this equates to dividend yields of 3.8% and 3.7%, respectively.

Goldman has a buy rating and $48.80 price target on its shares.

Regal Partners Ltd (ASX: RPL)

Another ASX dividend share that gets the thumbs up from analysts is Regal Partners.

It is the alternative investment manager that has been in the headlines this month after tabling a takeover bid for Platinum Asset Management Ltd (ASX: PTM).

Bell Potter believes the company is well-placed for growth. It 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.

The broker expects this to support fully franked dividends per share of 19.5 cents in FY 2025 and 22.1 cents in FY 2026. Based on its current share price of $3.63, this represents dividend yields of 5.4% and 6.1%, respectively.

Bell Potter has a buy rating and $4.97 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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. 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

View of a business man's hand passing a $100 note to another with a bank in the background.
Dividend Investing

Everything you need to know about the latest Soul Patts dividend

Here’s how big the latest dividend is from the investment house…

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Fund manager names 3 top ASX 200 dividend stocks to buy today

A leading fund manager expects these quality ASX dividend stocks will boost their payouts.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Why ASX dividend shares could still be better than term deposits

Let's see what dividend shares offer compared to term deposits.

Read more »

A man surrounded by huge piles of paper looks through a magnifying glass at his computer screen.
Dividend Investing

As the ASX indexes sink, these unique dividend shares are making investors money

The share price of these two dividend stocks has jumped higher over the past month.

Read more »

A woman looks nonplussed as she holds up a handful of Australian $50 notes.
Dividend Investing

How to invest $10,000 in ASX dividend shares in 2026

A strong income portfolio starts with the right mix. Here’s how I’d allocate my money.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

2 monthly income ETFs with yield reaching as high as 9%

These ASX EFTs pay their investors every single month.

Read more »

$50 dollar Australian notes in the back pocket of jeans, representing dividends.
Dividend Investing

3 ASX dividend shares yielding 9% (or more)

These dividend-paying shares offer a great yield and potential for growth.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Dividend Investing

2 ASX dividend shares with yields above 7%

Large yields and potential capital growth. What’s not to love?

Read more »