If you are hunting for ASX dividend shares to buy in May, then it could be worth checking out the two in this article.
That's because the team at Bell Potter is tipping them as buys with the potential to pay big dividends. Let's see what the broker is saying about them:
Dexus Convenience Retail REIT (ASX: DXC)
The first ASX dividend share that could be a buy according to Bell Potter is Dexus Convenience Retail REIT.
The Dexus Convenience Retail REIT is a property company that owns a high-quality portfolio of Australian service stations and convenience retail assets primarily located along the country's eastern seaboard.
Bell Potter believes its shares are undervalued at current levels and expects some big dividend yields in the near future. It explains:
DXC remains one of our preferred ways to play externally managed REITs given its high distribution yield (c.7.1%), price discovery via asset sales (with >10% of the book recycled last 18m), yet trading at a -20% discount to NTA, despite NTA starting to regrow. With EV growth moderating last 6mths, combined with operator reinvestment into the sector (BP for ConvenienceX, Viva for OTR, i7 Holdings for 7/Eleven) and stabilising funding costs, we see a platform to grow from whilst being 'paid to wait' at attractive risk-adjusted pricing.
As for those dividends, the broker is forecasting payouts of 20.6 cents per share in FY 2025 and then 20.9 cents per share in FY 2026. Based on its current share price of $2.95, this equates to dividend yields of 7% and 7.1%, respectively.
Bell Potter currently has a buy rating and $3.35 price target on its shares.
Harvey Norman Holdings Limited (ASX: HVN)
Another ASX dividend share that could be a buy according to Bell Potter is Harvey Norman. It is of course one of Australia's largest household and consumer goods retailers.
Bell Potter is positive on Harvey Norman due to its attractive valuation, property earnings, and exposure to the artificial intelligence (AI) megatrend. It said:
We see HVN trading attractively at ~15x on a 1-year forward basis with multiple catalysts near/midterm such as improving sales trends in key markets assisted by a sizable upside from the AI driven upgrade cycle/replacement & spend shift to tech, gaining penetration in targeted regions in the UK in addition to the incremental earnings opportunities in its Property division as Australia's largest single owner with a $4.4b global portfolio.
As for income, the broker is forecasting fully franked dividends of 25.4 cents per share in FY 2025 and then 28.1 cents per share in FY 2026. Based on the current Harvey Norman share price of $5.44, this will mean dividend yields of 4.7% and 5.2%, respectively.
Bell Potter currently has a buy rating and $6.00 price target on its shares.
