Do you have room in your income portfolio for some new additions?
If you do, then it could pay to listen to what analysts at Bell Potter are saying about the ASX dividend stocks in this article.
These shares have been named as buys and tipped to deliver market-beating returns for investors over the next 12 months.
Let's see what the broker is tipping as a buy:
Healthco Healthcare and Wellness REIT (ASX: HCW)
The first ASX dividend stock that Bell Potter is tipping as a buy is the Healthco Healthcare and Wellness REIT.
It is a real estate investment trust with a focus on healthcare and wellness assets. This includes hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness properties.
Bell Potter likes the company due to its discount to net tangible assets (NTA) and big dividend yield. It is explains:
As we highlighted in our recent detailed note, at a prevailing 27% discount to NTA, HCW's share price is factoring a poor outcome vis-a-vis HSO which is notwithstanding the recut terms upon entry of the deal in March '23 and cross default rights which sit across all 11 HSO-tenanted properties.
With +5% earnings growth expected for FY25, we see value in HCW at current levels with the buyback putting a floor under the share price and HCW continuing to deliver from a property perspective. At a +7% DPS yield and meaningful discount to NTA, HCW screens attractively on a sector-relative basis.
As mentioned above, Bell Potter believes that big yields are coming from this ASX dividend stock. It is forecasting dividends per share of 8.4 cents in FY 2025 and then 8.7 cents FY 2026. Based on the current Healthco Healthcare and Wellness REIT unit price of 98 cents, this will mean yields of 8.6% and 8.9%, respectively.
Bell Potter currently has a buy rating and $1.50 price target on its shares. This implies potential upside of 50% for investors.
Nickel Industries Ltd (ASX: NIC)
Another ASX dividend stock that Bell Potter thinks could generate big returns is Nickel Industries.
It is a low-cost producer of nickel pig iron (NPI), which is a key ingredient in stainless steel production.
Bell Potter thinks the company's shares are being undervalued by the market. Especially with its positive growth outlook and attractive dividend yield. It explains:
NIC is the only pure-play producer of scale on the ASX providing exposure to the nickel price, with earnings diversified across Type 1 and Type 2 nickel. Its aggressive growth profile is fully funded, it is currently moving through the peak CAPEX phase which we forecast to drive strong earnings growth in CY25 and CY26.
NIC has long-life assets with demonstrated ability to make money through the nickel price cycle while also sustaining a supportive (unfranked) dividend which we forecast to grow. At these levels it trades on undemanding valuation multiples.
As for dividends, the broker is forecasting Nickel Industries to pay 5 cents per share dividends in FY 2024 and FY 2025. Based on its current share price of 81 cents, this would mean dividend yields of 6.2% in both years.
Bell Potter has a buy rating and $1.43 price target on its shares. This suggests that upside of over 75% is possible from current levels.
