If you are hunting new ASX dividend shares for your income portfolio, then read on.
That's because Bell Potter has named its best buys for the month on its Australian equities panel.
These are the shares that it believes offer attractive risk-adjusted returns over the long term.
But what is being recommended? Here are two that make the broker's list:
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Universal Store Holdings Ltd (ASX: UNI)
This youth fashion retailer could be an ASX dividend share to buy according to the broker.
It believes its valuation is attractive given its strong earnings and dividend growth outlook. It explains:
Universal Store Holdings is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI will continue to increase store numbers over the next few years, supporting earnings growth of 14% p.a. over (FY25-27). Valuation looks attractive, trading on a fwd P/E of ~14x. UNI is a quality small cap (ROE ~25%) that is executing on its rollout strategy.
Bell Potter is forecasting fully franked dividends per share of 34.6 cents in FY 2025 and then 36.6 cents in FY 2026. Based on its current share price, this equates to dividend yields of 4.4% and 4.6%, respectively.
Nickel Industries Ltd (ASX: NIC)
Another ASX dividend share that makes the broker's best buys list is nickel miner Nickel Industries.
Bell Potter believes that the company is positioned for strong production growth and even stronger free cash flow generation. And despite this, it highlights that its shares are cheap at current levels. It said:
NIC is the only material ASX way to gain exposure to the nickel price, has a growth story, and is diversifying earnings to span Type 1 and Type 2 nickel. NIC continues to generate positive cash flows in a tough nickel market and is set to deliver major growth milestones in CY25 across its highest margin nickel operations. All up, given the forecast high production growth and potential for a very large free cash flow uplift in the next 2 years or so, NIC presents a compelling story and appears cheap at current valuation.
The broker expects this to underpin dividends of 4 cents per share in FY 2025 and then 10 cents per share in FY 2026. Based on its current share price, this equates to dividend yields of 6.5% and 16.1%, respectively, for income investors.
