If you are looking for some ASX dividend shares to buy, then look no further than the two listed below.
That's because they have been named as best buys by the team at Bell Potter. Here's what the broker is saying about them:
Harvey Norman Holdings Ltd (ASX: HVN)
The first ASX dividend share that could be a top buy according to Bell Potter is Harvey Norman. It is of course one of Australia's largest retailers.
Bell Potter believes that Harvey Norman's shares are good value compared to peers. And with the RBA expected to cut interest rates further this year, the broker believes its outlook is increasingly 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.
In respect to income, Bell Potter 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 $5.51, this would mean dividend yields of 4.6% and 5.1%, respectively.
Bell Potter has a buy rating and $6.00 price target on its shares.
Nickel Industries Ltd (ASX: NIC)
Another ASX dividend share that Bell Potter is bullish on is Nickel Industries.
It owns a portfolio of mining and low-cost downstream nickel processing assets in Indonesia which produce nickel for the stainless steel industry and the electric vehicle supply chain.
Bell Potter thinks that the company's operations are well-positioned to deliver strong production growth and free cash flow generation. So, with its shares trading on low multiples, the broker thinks now is an opportune time to invest. 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.
Its analysts are forecasting dividends of 4 cents per share in FY 2025 and then 10 cents per share in FY 2026. Based on its current share price of 76 cents, this equates to dividend yields of 5.25% and 13%, respectively.
Bell Potter has a buy rating and $1.51 price target on its shares.
