These ASX dividend stocks are better than Westpac

These dividend shares are highly rated by the team at Bell Potter.

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Key points

  • An office property owner and developer's shares are considered undervalued due to a significant discount to net tangible assets, with forecasted dividend yields of 7.35% for the next two fiscal years.
  • A fund manager's shares are viewed as undervalued despite positive operational performance, offering potential dividend yields of 4.5% and 6.5% for FY 2026 and FY 2027, respectively.
  • Both companies have buy ratings and substantial upside potential according to Bell Potter, with share price targets set above current trading levels.

Are you looking for some new additions to your income portfolio outside Westpac Banking Corp (ASX: WBC) and the rest of the big four banks?

If you are, the two ASX dividend stocks listed below could be a good shout.

Here's what the team at Bell Potter is saying about them:

GDI Property Group Ltd (ASX: GDI)

The first ASX dividend stock that could be a buy according to Bell Potter is GDI Property Group.

It is an owner, manager, and developer of office property, but also has exposure to car parks and co-living sectors.

The broker thinks that the market is undervaluing its shares. This is based on its significant discount to its net tangible assets (NTA). It explains:

No change to our Buy recommendation. GDI continues to trade at a significant -41% discount to NTA which reflects no value for its FM OpCo, and while the Perth office market recovery could be a 'slow burn' with early leasing wins working through for GDI, we do still see upside from current levels which drops straight through to FFO gains

In respect to income, the broker is forecasting dividends of 5 cents per share in both FY 2026 and FY 2027. Based on its current share price of 68 cents, this would mean dividend yields of 7.35% for both years.

Bell Potter also sees plenty of upside for its shares. It has a buy rating and 85 cents price target on them.

Regal Partners Ltd (ASX: RPL)

Another ASX dividend stock that Bell Potter is positive on is Regal Partners.

The broker thinks the market is also undervaluing this fund manager's shares. It highlights that they are trading at less than 12x forward earnings despite its positive performance. It commented:

Despite the positive operating metrics, the shares continue trade below $3.00, a level that is well below its highs. We believe this may relate to the conversion of various share classes into ordinary shares.

While the shares have recovered off their low points, we do not believe the improvement in operational performance is reflected in the current share price. We expect further positive news flow in the months ahead and will look to review our performance fee assumption upwards, as and when appropriate.

As for dividends, Bell Potter is forecasting fully franked payouts of 13.2 cents per share in FY 2026 and then 19 cents per share in FY 2027. Based on its current share price of $2.92, this would mean dividend yields of 4.5% and 6.5%, respectively.

The broker has a buy rating and $4.10 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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