If you are looking for ASX dividend shares to buy, then it could be worth checking out the two listed below.
They have been named on Bell Potter's Australian equities panel. These are the broker's favoured Australian equities that it believes offer attractive risk-adjusted returns over the long term.
Let's see what the broker is saying about them:
Coles Group Ltd (ASX: COL)
The team at Bell Potter thinks that Coles would be a great option for income investors.
It is of course one of Australia's leading retailers, with an extensive footprint of over 1,800 retail outlets nationally.
Bell Potter is positive on Coles' outlook due to its moderating costs, higher immigration, and the modernisation of its supply chain. It explains:
Coles Group is a diversified company with operations in food, liquor, petrol retailing and financial services. Coles also retains a 50% ownership interest in Flybuys. Costs are expected to remain elevated but should moderate through FY24 and FY25 as general inflation tapers off. In the medium term, 1) higher immigration should support grocery spending, and 2) Coles is entering a period of elevated capex intensity as it reinvests to modernise its supply chain and to catch up to competitors on online and digital offerings, which should help Coles maintain its market position.
As for income, the broker is forecasting a fully franked dividend yield of 3.8% over the next 12 months.
Transurban Group (ASX: TCL)
Another ASX dividend share that features on Bell Potter's Australian equities panel is Transurban.
It is a toll road operator with a collection of 22 key roads across both Australia and North America. It also has three major projects that are expected to open by 2026, which are designed to improve connections within cities and to help people get where they need to be.
Locally, its portfolio includes CityLink in Melbourne and the Cross City Tunnel in Sydney. In North America, its roads include the 95 Express Lanes in Greater Washington and the A25 in Montreal, Canada.
Bell Potter believes that Transurban is well-placed for growth due to its inflation-linked revenue stream and significant growth pipeline. It explains:
We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group's current pipeline of growth projects is $3.3 billion (TCL's share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.
Bell Potter is forecasting a dividend yield of approximately 5% over the next 12 months.
