If you are searching for the best ASX dividend shares to buy in October, then read on!
That's because Bell Potter has picked out its favourite through its Australian equities panel. Here are two dividend shares that it is bullish on:
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Centuria Capital Group (ASX: CNI)
The first ASX dividend share that could be a best buy in October is Centuria Capital. It is an investment manager with a focus on real estate.
Bell Potter believes the company is well-placed to benefit from tailwinds in the real estate sector. And as these have yet to be fully priced in, the broker thinks that now is the time to buy. It said:
Centuria Capital Group (CNI) is an investment manager with c.$21b of predominantly real-estate-focused assets under management. CNI manages funds spanning listed, unlisted wholesale and unlisted retail syndicates across all major asset classes. As per their listed funds, CNI's assets under management is primarily in the Office and Industrial markets, however it also operates in Daily Needs & Large Format Retail, as well as alternative subsectors such as Healthcare, Real Estate Credit, and Agriculture. CNI is well positioned to benefit from tailwinds in the Real Estate sector, and we see cyclical upside yet to be priced in.
Bell Potter expects a dividend yield of approximately 4.8% over the next 12 months.
Macmahon Holdings Ltd (ASX: MAH)
Another ASX dividend share that gets a big thumbs up from Bell Potter is Macmahon. It is an Australian contractor that operates two core segments: contract mining and civil infrastructure.
Bell Potter believes it can continue its positive form in the coming years, especially given the recent acquisition of Decmil and its expansion into renewables and public infrastructure. It said:
Contract Mining division operates surface and underground mines across Australia and SE Asia, exposed primarily to Gold (53%), Met Coal (19%), and Lithium (9%). Contracts are long-term with cost escalation pass-through, ensuring revenue stability. While capital-intensive, this segment generates EBITDA margins of 15-20%. The Civil Infrastructure division, strengthened by the Decmil acquisition, executes EPC projects, expanding from mine support into renewables and public infrastructure. Margins are lower (7% EBITDA), but the division is less capital-intensive, offering higher returns on capital and greater scalability. Despite contracts suggesting mid-to-high single-digit growth, MAH has achieved a 12.2% compound annual growth rate over five years (19.9% in Australia) through strong execution and acquisitions.
The broker is expecting a dividend yield of 4.3% from its shares over the next 12 months.
