If you are looking for ASX dividend shares to buy, then it could be worth listening to what Bell Potter is saying about the two in this article.
The broker has named them among its best buys for the month and is expecting some attractive dividend yields and major upside in the near term.
Here's what the broker is recommending to clients:
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COG Financial Services Ltd (ASX: COG)
This asset finance company has been named as an ASX dividend share to buy in May by Bell Potter.
Commenting on the company, the broker said:
COG Financial (COG) is a diversified conglomerate of distribution businesses focused on Australia. The group principally provides access to credit providers (and related insurance) for yellow commercial goods. This is delivered through a nationwide broker net. In addition, the company has some balance sheet funded direct originations, with a focus on capturing some of the overflow for non-prime chattel mortgages. A proportion of this is offered under peer-to-peer lending. Following the acquisition of Paywise, the company has articulated an external accumulation strategy, focused on novated leasing and salary packing services.
As for income, Bell Potter is forecasting fully franked dividends of 7 cents per share in FY 2026 and then 8.9 cents per share in FY 2027. Based on its current share price of $1.50, this would mean dividend yields of 4.7% and 5.9%, respectively.
Bell Potter has a buy rating and $2.30 price target on its shares, which implies potential upside of 53%.
Universal Store Holdings Ltd (ASX: UNI)
Another ASX dividend share that has been named as a best buy is youth fashion retailer Universal Store.
Bell Potter highlights its positive growth outlook, strong return on equity, and cheap valuation as reasons to buy. It said:
Universal Store Holdings is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI will continue to increase store numbers over the next few years, supporting earnings growth of 11% p.a. Valuation looks attractive, trading on a forward P/E of ~12.5x. UNI is a quality small cap (ROE ~26%) that is executing on its rollout strategy.
The broker expects this to underpin fully franked dividends of 36.9 cents per share in FY 2026 and then 39.3 cents per share in FY 2027. Based on its current share price of $6.34, this equates to generous dividend yields of 5.8% and 6.2%, respectively.
Bell Potter has a buy rating and $9.30 price target on its shares. This implies potential upside of almost 50% for investors.
