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

Wooden clock sculpture next to piles of coins.
Dividend Investing

Top 3 ASX dividend shares to buy before they go ex-dividend

Three big payouts, three deadlines this week.

Read more »

Piles of increasing coins on Australian $100 notes.
Dividend Investing

Want to bank the boosted BHP dividend? You'd better hurry!

BHP increased its final dividend payout by more than 50%.

Read more »

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Dividend Investing

Don't panic if these 9 ASX 200 shares fall today

These ASX 200 shares could see some early weakness.

Read more »

Yield written on wooden blocks with a hand putting coins on top, with a plant and pen on the table.
Dividend Investing

3 top ASX dividend shares to target in September 

These shares offer strong yields.

Read more »

Dividend yield written on a notebook with a chart, pen, and magnifying glass next to it.
Dividend Investing

Chasing dividends? 11 ASX shares in top-paying sectors going ex-dividend this week

Some big names in the top dividend-paying ASX 200 sectors of FY26 go ex-dividend this week.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Dividend Investing

2 ASX dividend shares with yields above 7%

These businesses are offering plenty of passive income.

Read more »

Stacks of Australian dollar currency banknotes.
Dividend Investing

Here's the dividend forecast out to 2029 for Wesfarmers shares

Wesfarmers could be one of the best dividend picks.

Read more »

Woman checking out new laptops.
Dividend Investing

1 ASX dividend stock down 42% I'd buy right now

This ASX retail share offers investors a hefty dividend yield.

Read more »