If you are hunting for ASX dividend shares to buy, then it could be worth turning your attention to Rural Funds Group (ASX: RFF) shares.
That's because it has been named as a top buy by the team at Bell Potter, which is expecting some attractive dividend yields over the next few years.
Image source: Getty Images
What is the broker recommending?
Bell Potter is recommending Rural Funds, which is an agricultural property company with a portfolio focused on almond orchards, vineyards, cattle, cotton and macadamias.
It notes that the company's assets are some of the most productive in the industry and leased to high quality tenants. This includes Treasury Wine Estates Ltd (ASX: TWE), Olam, JBS, and Select Harvests Ltd (ASX: SHV).
Bell Potter notes that agricultural land values have been increasing across certain areas, which bodes well for Rural Funds. It said:
In recent weeks we have seen both ABARE and Bendigo Bank release their assessment of agricultural land values through CY25, with both indicating modest YoY gains in transaction values. Land values: ABARES report highlighted a +9% YoY uplift in livestock properties, a +15% YoY uplift in cropping values and a -1% YoY contraction in orchard land values (on a per Ha basis). The Bendigo bank agricultural land values report highlighted +3% YoY growth in Australia wide values (+6% HoH), with largest gains in QLD (+6% YoY) and NSW (+4% YoY) of particular interest.
It also highlights that counterparty commodities remain favourable, adding:
Tree nut pricing has remained firm in USD terms, but facing the headwind of a higher AUDUSD. Opening pool macadamia prices (the direct commodity exposure of RFF) are broadly consistent with 2025 at A$4.25/kg. Cattle prices have bounced back following a period of softness and continuing to demonstrate YoY gains.
Should you buy this ASX dividend share?
According to the note, Bell Potter has retained its buy rating and $2.50 price target on Rural Funds' shares.
Based on its current share price of $1.98, this implies potential upside of 26% for investors over the next 12 months.
As for income, the broker expects dividends per share of 11.7 cents in FY 2026, FY 2027, and FY 2028. If this proves accurate, it will mean dividend yields of 5.9% each year through to 2028.
Commenting on its recommendation, Bell Potter said:
Buy rating unchanged. An acceleration in interest rates creates a headwind into FY27-28e, which for the most part is mitigated by the expanded J&F guarantee. Should RFF continue to execute on exiting or leasing the 31% of the portfolio unleased then we would expect the share price to bridge the gap to adjusted market NAV (NAV less capitalised costs which we estimate at $2.50-2.55ps).
