If you are wanting to make some additions to your income portfolio in the new financial year, then it could pay to listen to what Bell Potter is saying.
It has just named its key picks for the FY 2026 financial year and listed below are two ASX dividend shares that feature on the list. Here they are:
Bega Cheese Ltd (ASX: BGA)
Bell Potter thinks this diversified food company's shares could be an ASX dividend share to buy.
It highlights that the company is aiming to grow its EBITDA significantly to $250 million by FY 2028. If it delivers on this, it thinks it could mean major upside for investors. It said:
BGA continues to execute against its strategy to deliver FY28e EBITDA of >$250m, which will also likely result in a deleveraging of the balance sheet in FY27-28e. If successful in delivering on these initiatives and sustaining its historical 10 year average trading multiple then the upside remains compelling.
Bell Potter is forecasting dividends per share of 12 cents in FY 2025 and then 13 cents in FY 2026. Based on its current share price of $5.47, this would mean dividend yields of 2.2% and 2.4%. While not the biggest yields, this could change in the years that follow if it delivers on its targets.
The broker has a buy rating and $7.00 price target on its shares. This implies potential upside of 28% for investors from current levels.
Elders Ltd (ASX: ELD)
Another ASX dividend share that is highly rated is agribusiness company Elders.
It believes that Elders is positioned to deliver double digit earnings growth in the coming years. This bodes well for its dividends. It explains:
Executing on existing initiatives (SYSMOD and backward integration) and leverage to cattle prices are expected to drive double digit EPS growth for ELD through to FY27e. Achieving a favourable outcome on Delta or deploying the $245m in capital already raised to finance the transaction would likely accelerate this growth profile. Importantly, we don't see any value ascribed for completion of Delta or execution of the base business strategy in the current ELD share price.
As for income, the broker is expecting fully franked dividends of 36 cents per share in FY 2025 and then 43 cents per share in FY 2026. Based on the current share price of $6.31, this would mean dividend yields of 5.7% and 6.8%, respectively.
Bell Potter currently has a buy rating and $9.10 price target on its shares. This suggests that upside of 44% is possible between now and this time next year.
