If you are searching for 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 which dividend shares are being recommended? Here are two that make the broker's list:
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Cedar Woods Properties Ltd (ASX: CWP)
The first ASX dividend share that Bell Potter is bullish on is Cedar Woods. It is a residential property developer that looks well-placed to benefit from Australia's housing shortage.
The broker believes its shares are undervalued given its positive growth outlook. It said:
CWP has a 35-year track record of delivering earnings and a proven management team. CWP has a substantial pipeline of residential projects amidst Australia's extreme housing shortage, record presales, and positive forward commentary from a historically conservative management team.
We are attracted to the current valuation – trading below NTA (versus a long-term average premium of +30%) and at a forward PE of 10x, which undervalues its double-digit growth profile.
Bell Potter is forecasting fully franked dividends of 28 cents per share in FY 2025 and then 32 cents per share in FY 2026. Based on its current share price of $6.49, this represents dividend yields of 4.3% and 4.9%, respectively.
Harvey Norman Holdings Ltd (ASX: HVN)
Another ASX dividend share that Bell Potter rates highly is Harvey Norman. It is of course one of Australia's largest retailers.
The broker believes that its shares are better value compared to peers. And with the RBA cutting interest rates, Bell Potter believes its outlook is very positive. It explains:
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.
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 its current share price of $5.46, this would mean dividend yields of 4.65% and 5.15%, respectively.
