There are a lot of ASX dividend shares to choose from on the Australian share market.
But which ones could be buys for passive income? Let's take a look at two that analysts at Bell Potter are bullish on right now:
Image source: Getty Images
Harvey Norman Holdings Ltd (ASX: HVN)
This leading household goods retailer could be an ASX dividend share to buy according to the broker.
It likes Harvey Norman due to its attractive valuation, global property portfolio, and good yield. It said:
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.
The broker expects this to underpin 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 $6.28, this would mean dividend yields of 4.9% and 5.6%, respectively.
Bell Potter has a buy rating and $8.30 price target on its shares.
Rural Funds Group (ASX: RFF)
The broker also believes that Rural Funds could be an ASX dividend share to buy for passive income.
Rural Funds is an Australian agricultural property company with over 60 assets across five sectors. This includes vineyards, orchards, and cattle farms.
It currently boasts a weighted average lease expiry (WALE) of almost 14 years, which gives it great visibility on its future earnings and distributions. Despite this, Rural Funds' shares are trading at a deep discount to their net asset value (NAV). Bell Potter 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.
The broker is expecting dividends per share of 11.7 cents in both FY 2026 and FY 2027. Based on its current share price of $2.12, this would mean dividend yields of 5.5% for both years.
Bell Potter currently has a buy rating and $2.50 price target on its shares.
