Broker names 2 ASX dividend shares to buy before it's too late

Bell Potter is urging income investors to buy these shares.

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Key points

  • Rural Funds Group offers a promising mix of capital growth and income through its diverse agricultural portfolio, with Bell Potter seeing it as undervalued and highlighting its progress in enhancing asset profitability and funding.
  • Universal Store, with its robust growth trajectory in youth fashion retail, stands out due to its strategic brand expansion and private label strategy, potentially leading to substantial long-term dividend yields.
  • Bell Potter's buy ratings on both Rural Funds and Universal Store reflect their strong income-generating potential, with forecasted dividend yields offering attractive returns for income-focused investors.

There are a lot of ASX dividend shares out there for income investors to choose from.

In fact, there are so many it can be hard to decide which ones to buy over others.

To narrow things down, let's take a look at two that Bell Potter currently rates as buys. They are as follows:

Rural Funds Group (ASX: RFF)

The first ASX dividend share that Bell Potter is bullish on is Rural Funds.

It is the owner of a diversified portfolio of Australian agricultural assets. From its 63 properties across five states, the company's strategy is to generate capital growth and income from developing and leasing agricultural assets.

It notes that lessees are predominantly corporate and institutional entities, representing approximately 83% of FY 2026 forecast income. Several of these lessees are also listed on domestic or international share markets.

Bell Potter thinks its shares are still undervalued despite outperforming in 2025. It 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 dividends, Bell Potter expects payout of 11.7 cents per share in both FY 2026 and FY 2027. Based on its current share price of $1.98, this would mean dividend yields of 5.9% for both years.

The broker also sees potential for its shares to climb meaningfully higher in 2026. It currently has a buy rating and $2.45 price target on them.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend shares that is highly recommended by Bell Potter is Universal Store.

It is a youth fashion focused retailer responsible for the Universal Store, Thrills, and Perfect Stranger brands.

Bell Potter thinks that its shares deserve to trade on higher multiples given its positive growth outlook, which is being underpinned by its store rollout and private label strategy. It said:

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging broader category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution. We continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

Bell Potter expects this to support fully franked dividends of 37.3 cents in FY 2026 and then 41.4 cents in FY 2027. Based on its current share price of $8.00, this represents dividend yields of 4.7% and 5.2%, respectively.

The broker also sees plenty of upside for this one. It currently has a buy rating and $10.50 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Australia has recommended Universal Store. 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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