There are plenty of ASX dividend shares for investors to choose from on the local market.
To narrow things down for income investors, let's take a look at a couple that Bell Potter has named as buys.
Here's what they are recommending to clients:
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Accent Group Ltd (ASX: AX1)
The team at Bell Potter thinks that Accent Group would be a top ASX dividend share to buy.
It is a leading footwear focused retailer that owns brands such as Hype DC, Platypus, Stylerunner, and The Athlete's Foot. It also has exposure to fashion apparel with Glue Store and Nude Lucy, and is rolling out the Sports Direct brand across Australia.
With its shares down materially from their highs, Bell Potter thinks that now could be a good time to invest. Especially given its view that the selling has been overdone and that falling interest rates should be supportive of an improvement in its performance in the near future. It recently said:
While some ongoing weakness in highly discretionary categories similar to AX1's non-sport segments remain, we expect monetary policy catalyst led recovery into the back-end of CY25 to support FY26e performance in the name. As a medium-term catalyst, we expect a higher growth focus for the name leveraging the outperforming sports segment via global partner and key shareholder, FRAS.
With the first Sports Direct store to be opened by the end of CY25, we anticipate the unlocking of the sizable store roll-out opportunity for the banner in Australia (50-store target over 6 years), while benefiting from a higher relevance to leading brand partners such as Nike backed by FRAS.
Bell Potter continues to forecast attractive dividend yields in the near term from its shares. It is expecting fully franked dividends of 7.4 cents per share in FY 2025 and then 9.5 cents per share in FY 2026. Based on its current share price of $1.57, this equates to dividend yields of 4.7% and 6%, respectively.
Bell Potter currently has a buy rating and $1.90 price target on its shares.
Elders Ltd (ASX: ELD)
Another ASX dividend share that has been given the thumbs up is agribusiness company Elders.
Bell Potter also believes that its shares are being undervalued by the market. Especially given that its thinks that Elders is well-placed to grow its earnings in the double digits through to 2027. It recently said:
We view the drawn-out Delta ACCC saga as masking the material improvement in the baseline drivers of the ELD business as we approach FY26e, those being: (1) a material acceleration in crop input and livestock pricing indicators; and (2) an improved 2H25-1H26 seasonal outlook. We forecast CAGR double digit EPS growth to FY27e on baseline drivers, with Delta having the scope to be ~10% accretive to FY26e EPS.
As for income, Bell Potter expects some attractive dividend yields. It is forecasting 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 $7.65, this would mean dividend yields of 4.7% and 5.6%, respectively.
Bell Potter has a buy rating and $9.45 price target on its shares.
