If you are an income investor on the lookout for new ASX dividend shares to buy, then read on.
That's because the team at Bell Potter has just named one high-yield option with huge upside potential to buy now.
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Which ASX dividend share?
The dividend share that Bell Potter is recommending to clients is Regal Partners Ltd (ASX: RPL).
It is a boutique asset manager responsible for a number of alternative investment strategies, investing across hedge funds, growth equity, credit & royalties, and real & natural assets.
Bell Potter notes that Regal Partners has around $21 billion in funds under management that is invested on behalf of institutions, family offices, charitable groups and private investors.
The company has also undertaken an aggressive acquisition strategy in recent years. This includes acquiring VGI Partners, PM Capital, Taurus, Merricks and Argyle.
Bell Potter was pleased with the company's half-year results, noting that its profit was ahead of expectations. It said:
RPL delivered 1H26 Normalised NPAT of $93.3m, ahead of market expectations and above the $90m floor pre-reported ahead of the result. Guidance was predicated on management fees of $110m and performance fees of $115m.
Operating results: RPL provided a more comprehensive presentation of its financial results, with performance fee contributions separated and waterfalled through to the pre-tax profit line. Both demonstrated an improvement. Fund management fees of $91.0m were up +23% YOY and loan management fees of $22.9m were down -12% YOY. Average take-rate was down -7bps to 1.08%, reflecting lower loan activity, with an improved pricing outcome on 2H25.Performance fees of $118.7m were up +180% YOY, driven by different contributions to the record result in 2H25. Normalised NPAT of $93.3m was up +108% YOY vs. headline NPAT of $94.1m.
Big potential returns
According to the note, in response to the results, Bell Potter has retained its buy rating and $4.80 price target on the ASX dividend share.
Based on its current share price of $2.82, this implies potential upside of 70% for investors over the next 12 months.
In addition, Bell Potter is forecasting fully franked dividends per share of 19 cents in FY 2026, 20 cents in FY 2027, and then 22 cents in FY 2028. This represents dividend yields of 6.7%, 7.1%, and 7.8%, respectively.
Commenting on its buy recommendation, the broker said:
Our Buy thesis is unchanged. RPL has already met our quarterly flow forecast and is seeing offshore credit demand while strengthening the balance sheet. Trading on 9x earnings, these aspects are underappreciated vs. 13x for global long only managers. EPS -3%/-3%/-2% factoring in visibility on non-performance employee cash expense.
