The best ASX dividend shares to buy now

Bell Potter has picked out two top shares for income investors.

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Are you on the lookout for some new ASX dividend shares to buy?

If you are, it could be worth checking out the two named below that Bell Potter is tipping as buys right now.

Here's what it is recommending to clients:

Harvey Norman Holdings Ltd (ASX: HVN)

The team at Bell Potter remains very positive on this leading household goods retailer and sees it as one of the best ASX dividend shares to buy now.

The broker points out that Harvey Norman is one of the most diversified retailers in terms of both categories and regions. In addition, something that is often overlooked by investors is its significant property portfolio. It explains:

Despite the strong re-rate in the name, HVN trades at ~2.0x market capitalisation to freehold property value as Australia's single largest owner in large format retail with a global portfolio surpassing $4.5b and collectively owning ~40% of their stores (franchised in Australia and company operated offshore). This sees our view that of the 1-year forward ~19x P/E multiple as justified considering the multiple catalysts near/mid-term.

As for income, the broker is forecasting fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. Based on its current share price of $6.68, this would mean dividend yields of 4.6% and 5.3%, respectively.

Bell Potter has a buy rating and $8.30 price target on its shares.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that Bell Potter is recommending to clients is Rural Funds.

It is an Australian agricultural property company with a total of 63 assets across five sectors. This includes vineyards, orchards, and cattle farms. At the last count, it boasted a weighted average lease expiry of 13.9 years, which gives it great visibility on its future earnings and ultimately distributions.

Bell Potter notes that its shares are trading at a significant discount to their net asset value of $3.08. 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.

Bell Potter believes the company is positioned to pay dividends per share of 11.7 cents in both FY 2026 and FY 2027. Based on its current share price of $2.02, this would mean dividend yields of 5.8% for both years.

The broker 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 Harvey Norman and 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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