2 buy-rated ASX dividend stocks trading at significant discounts

Bell Potter thinks these income options are dirt cheap at current levels.

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Key points
  • GDI Property Group is seen as undervalued, trading at a significant discount to NTA, with promising dividend yields and potential FFO gains, according to Bell Potter.
  • Rural Funds Group is also considered cheap, trading at a discount to market NAV, with anticipated income growth supported by improving counterparty profitability and asset resilience.
  • Both stocks have buy ratings from Bell Potter, projecting substantial dividend yields and upside potential based on current price targets.

The share market may be trading near a record high, but that doesn't mean there aren't ASX stocks trading at a discount.

For example, the two ASX dividend stocks in this article could be materially undervalued according to analysts at Bell Potter.

Here's why the broker thinks income investors should be snapping them up before it's too late:

Couple looking at their phone surprised, symbolising a bargain buy.

Image source: Getty Images

GDI Property Group Ltd (ASX: GDI)

GDI Property Group could be a cheap ASX dividend stock to buy now according to the broker.

It describes itself as an integrated, internally managed commercial property investor with capabilities in the identification and execution of acquisition opportunities, and then the ownership, management, development, refurbishment, leasing, and syndication of assets.

Bell Potter thinks that its shares are being undervalued by the market and sees plenty of upside for investors. It said:

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

As for dividends, the broker is forecasting payouts of 5 cents per share in both FY 2026 and FY 2027. Based on its current share price of 66 cents, this would mean dividend yields of 7.6% for both years.

Bell Potter currently has a buy rating and 85 cents price target on its shares.

Rural Funds Group (ASX: RFF)

Another ASX dividend stock that could be dirt cheap according to Bell Potter is Rural Funds.

It is a property company that owns a diversified portfolio of Australian agricultural assets. From these 63 properties across five states, its strategy is to generate capital growth and income from developing and leasing agricultural assets.

Commenting on the company, the broker said:

Our Buy rating is unchanged. The -~35% discount to market NAV remain higher than average (~6% premium since listing) and likely reflects the proportion of assets that are underearning as operating farms. With a continued improvement in most counterparty profitability indicators in recent months (i.e. cattle, almond and macadamia nut prices), resilience in farming asset values and the progress made in creating headroom in funding lines to complete the macadamia development we see this as excessive.

As for income, the broker is forecasting dividends per share of 11.7 cents in both FY 2026 and FY 2027. Based on its current share price of $1.94, this would mean dividend yields of 6% for both years.

Bell Potter currently has a buy rating and $2.45 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 positions in and has recommended Rural Funds Group. 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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