There are a lot of options for income investors on the Australian share market.
But which ASX dividend shares could be top buys right now?
To narrow things down, let's look at a couple that Bell Potter is recommending to clients. They are as follows:
Image source: Getty Images
Amcor (ASX: AMC)
This packaging company could be an ASX dividend share to buy now according to the broker.
The reason for this is the transformative merger with Berry Global, which Bell Potter believes could underpin a period of significant growth. It explains:
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.
In respect to dividends, the consensus estimate is for payouts of 81 cents per share in FY 2026 and then 87 cents per share in FY 2027. Based on its current share price of $12.41, this would mean dividend yields of 6.5% and 7%, respectively.
Bell Potter doesn't currently have a price target for Amcor's shares. However, it has named the company in its Core Portfolio, which is a diversified, benchmark aware portfolio of 25-35 Australian equities.
Perpetual Ltd (ASX: PPT)
Another ASX dividend share that gets the thumbs up from Bell Potter is financial services company Perpetual.
It has also recently gone through a transformation that Bell Potter believes has left it well-placed for a return to form and ultimately some big payouts to shareholders. It said:
Over the last few years PPT has taken heavy significant charges relating to the acquisition and integration (of Pendal, Barrow Hanley and Trillium), as well as the subsequent Strategic Review, separation program and Simplification Program. With the sale of WM, we anticipate that these charges will start to abate and that UPAT, will converge closer to NPAT and underlying cash generation.
We anticipate that the sale of the Wealth Management business will free resource within the company, reducing net debt, and lower interest costs which in turn should free cashflow for dividends and reinvestment in the business.
Bell Potter is forecasting dividends per share of $1.25 in FY 2025 and then $1.42 in FY 2026. Based on its current share price of $20.51, this would mean dividend yields of 6.1% and 6.9%, respectively.
The broker has a buy rating and $23.00 price target on its shares.
