Income investors have plenty of options on the Australian share market.
To narrow things down, let's look at three ASX dividend shares that Bell Potter thinks are among the best to buy right now. They are as follows:
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Harvey Norman Holdings Ltd (ASX: HVN)
Bell Potter thinks that Harvey Norman could be an ASX dividend share to buy. Its analysts feel that its valuation is attractive given its positive outlook and sizeable land portfolio. They said:
We view HNV's valuation more compelling, particularly given its additional exposure to furniture and land portfolio relative to JBH and WES. In addition, we see the company as a key beneficiary of RBA rate cuts as housing market returns to a more buoyant phase, aided by rising disposable income and house prices during the rate-cutting cycle and that should buoy consumer sentiment. All up, Harvey Norman is well-positioned to benefit from increased spending on big ticket household items such as furniture and electronics.
The broker is forecasting fully franked dividend yields of 4.7% in FY 2025 and 5.2% in FY 2026.
Nickel Industries Ltd (ASX: NIC)
Another ASX dividend share that gets the thumbs up is nickel producer Nickel Industries. Bell Potter believes it is well-placed to generate a significant jump in free cash flow as it delivers on major growth milestones. 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 is expecting dividend yields of 6.25% in FY 2025 and then 15% in FY 2026.
Whitehaven Coal Ltd (ASX: WHC)
Bell Potter thinks that this coal miner could be an ASX dividend share to buy. This is due to its positive outlook on metallurgical coal. It explains:
We hold a positive long-term met coal outlook on the back of a constrained and increasingly consolidated supply base along with growing Indian demand that should support long-term price growth. WHC's balance sheet will significantly de-risk with the Blackwater selldown completion scheduled in the current quarter. In addition, further cost-out and productivity enhancements across its Queensland portfolio will support higher production and cash flows.
The broker is forecasting fully franked dividends of 3% in FY 2025 and then 2% in FY 2026.
