Why Bell Potter rates these ASX dividend shares with 5% to 8% yields as buys

One of these shares could offer a future dividend yield of 8.3%.

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There are a lot of ASX dividend shares for investors to choose from.

So many, it can be hard to decide which ones to buy above others.

To narrow things down, let's take a look at two dividend shares that Bell Potter has given buy ratings to this morning.

Here's what the broker is recommending to clients:

Man holding out Australian dollar notes, symbolising dividends.

Image source: Getty Images

DigiCo Infrastructure REIT (ASX: DGT)

Bell Potter believes that this data centre-focused REIT could be an ASX dividend share to buy now.

It was pleased with its performance in FY 2026 and thinks its growth outlook is very positive, which bodes well for dividends. It said:

While guidance for FY27 EBITDA came in below our and consensus estimates, material capex spend with associate customer LOIs points to earnings ramp up in FY28 as billing comes on line which should support the growing dividend in FY27(+25%), and into FY28 with prior potential capital return plans now appearing more multi year DPS growth oriented. We see valuation support trading at a -28% discount to NTA with an earnings growth pathway ahead next few years.

Bell Potter is forecasting dividend yields of 5.9% in FY 2027, 7.3% in FY 2028, and then 8.3% in FY 2029.

The broker currently has a buy rating and $3.35 price target on its shares.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that has been given the thumbs up by Bell Potter is agricultural property company Rural Funds.

The broker notes that Rural Funds delivered an FY 2026 result that was broadly in line with its expectations.

And while its guidance for FY 2027 was short of expectations, Bell Potter still sees significant value in its shares at current levels. It said:

Our Buy rating is unchanged. FY27e guidance was disappointing, with the underperformance driven by farming returns (a 6-7% headwind against AFFO). While disposing assets in excess of book is a positive, there remains ~$356m in assets under development and either entering a lease or exiting these assets is realistically the only way to remove the agricultural volatility (on which there is limited granularity) inherent in the earnings base and bridge the gap to market NAV.

Bell Potter is forecasting dividend yields of 5.6% in FY 2027, FY 2028, and FY 2029. 

The broker has a buy rating and $2.55 price target on Rural Funds' shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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