The team at Bell Potter has identified an ASX 200 share that they believe could generate big returns for investors.
And while no dividend is expected in 2026, it could pay to be patient, with the broker expecting a big dividend yield next year.
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Which ASX 200 share?
The share that has caught the eye of Bell Potter is Nickel Industries Ltd (ASX: NIC).
It notes that the nickel producer has announced deals to acquire more production capacity. It said:
NIC has announced it will acquire interests in expansions to the existing ENC HPAL facility (46% NIC) which will lift its attributable nickel in HPAL capacity by ~17ktpa (41%) to 58.6ktpa. NIC will acquire a 17.5% interest in the 36ktpa PT Teluk Metal Industry (TMI) expansion for US$169m cash consideration. Separately, NIC will acquire a 36% interest in the 28ktpa PT Chengsheng New Energy (CNE) expansion via an equity swap with consideration being an 18% interest in the Sampala Project (reducing NIC from 60% to 42%). TMI and CNE are both expected to come online in mid-2027 with ore supply from Sampala.
The TMI acquisition is subject to a Construction Guarantee capping the acquisition cost at US$169m and delivery of nameplate production by September 2027. NIC expects to fund the cash payment, due 26 November 2026, from existing cash and operating cash flow. If needed, NIC's major shareholder (Shanghai Decent) will provide debt funding on commercial terms. NIC held cash and equivalents of US$212m at end March 2026.
Big potential returns
According to the note, Bell Potter has retained its buy rating on the ASX 200 share with an improved price target of $1.55 (from $1.45).
Based on its current share price of 89 cents, this implies potential upside of almost 75% for investors over the next 12 months.
And as mentioned at the top, no dividend is expected in FY 2026. However, in FY 2027 an unfranked 6 cents per share dividend is forecast, followed by a 14 cents per share dividend in FY 2028.
This implies potential dividend yields of 6.75% and 15.7%, respectively.
Commenting on its buy recommendation, Bell Potter said:
EPS changes in this report are: CY26: +1%, CY27 +5%, CY28 +16%. NIC offers nickel price leverage and diversified margin exposure across an integrated value chain. The HPAL expansion transactions will further balance NIC's earnings into downstream higher-margin operations and preserve earnings through the nickel price cycle. We lift our Target Price 7% to $1.55/sh and retain our Buy rating.
