Are you searching for new ASX dividend shares for your income portfolio? If you are, 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 by the broker? Here are two that make its coveted list:
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Cedar Woods Properties Ltd (ASX: CWP)
Bell Potter thinks that Cedar Woods is one of the best ASX dividend shares to buy now.
It is a residential property developer that appears well-positioned to be a big winner from Australia's chronic housing shortage.
Combined with its developments, it expects this to underpin strong earnings growth in the coming years. 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 11x, which undervalues its double-digit growth profile.
As for income, 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 $7.32, this represents dividend yields of 3.8% and 4.4%, respectively.
IVE Group Ltd (ASX: IGL)
Another ASX dividend share that could be a best buy according to the broker is IVE Group.
It is Australia's largest integrated marketing communications business with leading positions across every sector in which the company operates.
Bell Potter believes the company is well-placed to reward shareholders with some big dividends in the near term. It recently said:
Over the past 20 years or so has expanded organically into logistics, creative services, integrated marketing and web offset printing and through acquisition into data driven communications, retail display, premiums and merchandising, marketing automation, distribution and digital catalogues. The result is a diversified, resilient business which has supported a consistently high dividend yield and a strong Balance Sheet to pursue further growth opportunities.
In respect to dividends, Bell Potter is forecasting fully franked payouts of 18 cents per share in both FY 2025 and FY 2026. Based on its current share price of $2.85, this equates to 6.3%
