The team at Bell Potter has an Australian equities panel that it updates once a month.
This is its panel of favoured Australian equities that it believes offer attractive risk-adjusted returns over the long term. When making its picks, the broker considers the current macro-economic backdrop and investment environment.
It also focuses on quality companies with proven track records, strong management teams, and competitive advantages
Two ASX dividend stocks that currently feature on the list are named below. Here's what the broker is saying about them:
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Macquarie Group Ltd (ASX: MQG)
The team at Bell Potter think that this investment bank could be an ASX dividend stock to buy.
The broker likes Macquarie's diversification, annuity-style income, and significant surplus capital. It explains:
MQG's diversification is an integral part of the investment thesis. Over the past decade, MQG has undergone a significant transformation, pivoting from its traditional investment banking roots to emerge as a dominant player in global asset management, particularly in infrastructure and renewable energy. This diversification and the potential to generate increased annuity-style income from sources like asset management should bolster MQG's valuation. MQG boasts a substantial $10.7 billion surplus capital, providing ample resources for future investments and growth.
Bell Potter is expecting a 3% dividend yield from Macquarie's shares.
Worley Ltd (ASX: WOR)
Another ASX dividend stock that gets the thumbs up is engineering services provider Worley.
Bell Potter likes the company due to its belief that it will benefit from spending in the energy sector. It also highlights its very attractive valuation. The broker said:
Worley is a global leader in engineering services, which is poised to benefit from the growing capital investments in the energy sector. The company is well positioned for growth, driven by both traditional (oil and gas) and sustainable energy projects. While traditional projects currently account for half of WOR's revenue, the company is actively transitioning towards higher-margin sustainability-related projects, solidifying its position as a global leader in this space.
This strategic shift not only ensures near-term gains from the ongoing oil and gas reinvestment cycle but also secures long-term structural growth from the energy transition. Despite a strong earnings growth outlook, WOR's valuation has derated significantly. Currently trading at a forward PE multiple of ~15x, we think there is upside risk to the growth outlook in the medium term.
Bell Potter is expecting Worley to provide investors with a 3.75% dividend yield over the next 12 months.
