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

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

Retirees, check out this new $330m listed investment company which aims to pay monthly fully franked dividends

If you're looking for income, this might be just the thing.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Dividend Investing

2 ASX dividend stocks Morgans rates as buys

Let's see what the broker is bullish on this month.

Read more »

Happy young woman saving money in a piggy bank.
Dividend Investing

Here's how much I'd need to invest in BHP shares to generate a $100 monthly income

BHP is one of the ASX’s top dividend payers and could be a good option for income investors.

Read more »

Dividend Investing

These buy-rated ASX dividend shares offer 7% to 8% yields

Morgans is expecting some big dividend yields from these shares.

Read more »

Woman in bed rolls over to hit clock
Dividend Investing

14 ASX shares about to go ex-dividend

Stocks going ex-dividend include Flight Centre, Perenti, NRW Holdings, and Service Stream.

Read more »

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

How many Santos shares do I need to buy for $10,000 a year in passive income?

Santos shares have delivered two yearly dividend payouts since 2019.

Read more »

Man holding fifty Australian Dollar banknotes in his hands, symbolising dividends.
Dividend Investing

Is now a good time to buy ASX dividend shares for passive income?

An easy passive income is every Australian's dream.

Read more »

Two plants grow in jars filled with coins.
Dividend Investing

You won't believe this ASX stock's dividend growth

The 4.15% yield is just the start.

Read more »