There are plenty of ASX dividend shares to choose from on the local market.
But which ones could be best buys?
To narrow things down, let's look at two that Bell Potter has on its Australian equities panel.
These are equities that the broker believes offer attractive returns over the long term.
Here are two ASX dividend shares it is tipping as buys:
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Elders Ltd (ASX: ELD)
Bell Potter thinks this agribusiness company's shares are undervalued at current levels.
In addition, it highlights Elders' strong dividend yield as a reason to buy. It said:
We see value in ELD, particularly with the market appearing to undervalue the pending Delta acquisition. The base business is performing well with multiple growth drivers including recovery from drought conditions, system modernisations, and backward integration benefits. We are attracted to ELD's valuation, which is relatively cheap at 12x 12MF P/E, along with these potential upside catalysts and a strong dividend yield.
The broker is forecasting fully franked dividends of 39 cents per share in FY 2026 and then 45 cents per share in FY 2027. Based on its current share price of $7.35, this would mean dividend yields of 5.3% and 6.1%, respectively.
Bell Potter has a buy rating and $9.00 price target on Elders' shares.
Nick Scali Limited (ASX: NCK)
Another ASX dividend share that Bell Potter is bullish on is furniture retailer Nick Scali.
It believes the company is well-placed for growth given its UK rollout. It said:
Nick Scali is an Australian retailer specialising in household furniture and related accessories, operating under the core Nick Scali brand as well as the Plush banner. >90% of sales are completed in-store, with the company maintaining a substantial physical presence with over 100 showrooms across Australia and New Zealand, and has recently expanded into the UK, which now contributes around 8% of total revenue.
Looking ahead, the key growth drivers include the continued roll-out of Nick Scali stores in the UK, supported by the refurbishment of acquired Fabb locations, and the ability to leverage the group's established supply base to drive scale efficiencies and margin expansion.
As for income, the broker is forecasting fully franked dividends of 61.9 cents per share in FY 2026 and then 75.1 cents per share in FY 2027. Based on its current share price of $14.93, this would mean dividend yields of 4.15% and 5%, respectively.
Bell Potter has a buy rating and $25.00 price target on Nick Scali's shares.
