Thankfully for income investors in this low interest rate environment, there are plenty of ASX dividend shares to choose from on the local market.
But which ones could be buys right now?
Two that Bell Potter thinks are among the best to buy now are listed below. Here's why the broker is bullish on these names:
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Amcor (ASX: AMC)
Bell Potter is very positive on this packaging giant and believes it could be an ASX dividend share to buy. It has named the company in its Core Portfolio, which is a diversified, benchmark aware portfolio of 25-35 Australian equities.
Commenting on its addition in the portfolio, the broker said:
The investment thesis for Amcor is based on its transformative merger with Berry Global, which positions the company for a period of significant growth and quality improvement. The merger is expected to drive two years of double-digit EPS growth, fuelled by an estimated $590 million in synergies, with 80% anticipated to be realised within the first 24 months. Beyond the near-term earnings growth, the merger also creates a more resilient and less cyclical business by increasing its exposure to the defensive home & personal care and pharmaceutical sectors.
As for income, the consensus estimate is for dividends per share of 81 cents in FY 2026 and then 87 cents in FY 2027. Based on its current share price, this would mean dividend yields of 6.2% and 6.6%, respectively.
Cedar Woods Properties Ltd (ASX: CWP)
Another ASX dividend share that is highly rated by Bell Potter is property developer Cedar Woods.
It likes the company due to its strong position in a market battling with extreme housing shortages. It explains:
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.
In respect to dividends, the broker expects payouts of 28 cents per share in FY 2025 and then 32 cents per share in FY 2026. Based on its current share price, this equates to dividend yields of 3.8% and 4.3%, respectively.
Bell Potter has a buy rating and $8.00 price target on its shares.
