Why experts say these growing ASX dividend shares are top buys for income

Analysts have good things to say about these income options.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Bell Potter is optimistic about Amcor's potential following its merger with Berry Global, anticipating significant earnings growth and improved resilience in its business model, alongside attractive dividend yields in the coming years.
  • Morgans is confident in Flight Centre's long-term recovery prospects, noting that improved macroeconomic conditions could enhance earnings and share price, while offering a steady increase in dividend yields amidst current uncertainties.
  • Both Amcor and Flight Centre are regarded as promising dividend shares for December, based on their strategic positions and potential growth trajectories in the near future.

Are you on the hunt for some ASX dividend shares to buy in December?

If you are, analysts think the two named below could be worth considering. Here's what they are saying about them:

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.

Image source: Getty Images

Amcor (ASX: AMC)

Amcor could be an ASX dividend share to buy now according to analysts at Bell Potter.

It is a global packaging company that produces a wide variety of flexible and rigid packaging solutions for consumer, healthcare, and other markets.

The broker is feeling bullish on the company's outlook thanks to its transformative merger with Berry Global. As well as making the business less cyclical, Bell Potter believes this merger leaves it well-positioned for a period of significant growth. It 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.

In respect to income, the consensus estimate is for dividends of 78 cents per share in FY 2026 and then 80 cents per share in FY 2027. Based on its current share price of $12.73, this would mean dividend yields of 6.1% and 6.3%, respectively.

Bell Potter has the company in its core portfolio with a key overweight rating "due to its valuation discount and post-merger growth prospects."

Flight Centre Travel Group Ltd (ASX: FLT)

Over at Morgans, its analysts are bullish on travel agent giant Flight Centre and think that it could be an ASX dividend share to buy in December.

The broker believes it is worth sticking with the company through tough trading conditions because when the tide finally turns, it thinks the upside could be material for investors. Commenting on the company, Morgans said:

FLT's FY25 result was broadly in line with its recent update. Corporate was weaker than expected while Leisure and Other were stronger. FLT's guidance for a flat 1H26 was stronger than we expected however it was weaker than consensus. Earnings growth is expected to accelerate in the 2H26 from an improvement in macro-economic conditions and internal business improvement initiatives. We have made minor upgrades to our forecasts.

We are buyers of FLT during this period of short-term uncertainty and share price weakness because when operating conditions ultimately improve, both its earnings and share price leverage to the upside will be material.

With respect to dividends, Morgans is forecasting fully franked dividends of 52 cents per share in FY 2026 and then 61 cents per share in FY 2027. Based on the current Flight Centre share price of $15.41, this would mean dividend yields of 3.4% and 4%, respectively.

Morgans currently has a buy rating and $18.38 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 Amcor Plc. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Dividend Investing

1 ASX dividend stock down 27% I'd buy right now

This leading ASX dividend stock could be one of the best buys right now.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Are BHP or CBA shares a better buy for passive income?

Should I buy CBA or BHP shares for passive income?

Read more »

ETF written in white on a multi coloured background.
Dividend Investing

Why I'd buy these 2 ASX ETFs for $10,000 a year in passive income

These two ASX ETFs provide a diversified means to earning a $10,000 yearly passive income.

Read more »

Woman holding $50 and $20 notes.
Dividend Investing

8 ASX shares going ex-dividend next week

Commonwealth Bank, Resmed, and AMP are among the ASX shares with ex-dividend dates next week.

Read more »

Woman relaxing on her phone on her couch, symbolising passive income.
Dividend Investing

Why I'd buy Telstra and these ASX dividend shares for passive income

These shares offer the type of qualities I would want from passive income investments.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Dividend Investing

2 ASX dividend shares I'd buy today for passive income

These ASX dividend shares can deliver a strong passive income investors.

Read more »

Australian notes and coins symbolising dividends.
Communication Shares

Everything you need to know about the Telstra dividend

Owners of Telstra shares can look forward to another good dividend.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Bank Shares

Revealed: The ASX bank share with the highest dividend yield today

The highest-yielding bank right now might surprise you.

Read more »