Are you wanting to make some new additions to your income portfolio?
Well, it could be worth considering the two ASX dividend shares listed below that brokers are tipping as buys. Here's what sort of dividend yields you can expect from them:
Image source: Getty Images
BHP Group Ltd (ASX: BHP)
Mining giant BHP could be a quality option for income investors that aren't opposed to investing in the resources sector.
Goldman Sachs is feeling very positive about the Big Australian and has a buy rating and $48.40 price target on its shares. It believes that BHP deserves its premium valuation thanks to its free cash flow (FCF) generation. It said:
BHP is currently trading at ~6.0x NTM EBITDA (25-yr average EV/EBITDA of 6.6x), a slight premium to RIO on ~5.5x; and at 0.9xNAV vs RIO at 0.8xNAV. Over the last 10 years, BHP has traded at a ~0.5x premium to global mining peers. We believe this premium can be partly maintained due to ongoing superior margins and operating performance (particularly in Pilbara iron ore where BHP maintains superior FCF/t vs. peers).
As for dividends, the broker is forecasting fully franked dividends per share of US$1.42 (A$2.16) in FY 2024 and then US$1.23 (A$1.87) in FY 2025. Based on its current share price of $40.86, this equates to dividend yields of 5.3% and 4.6%, respectively.
Regal Partners Ltd (ASX: RPL)
Over at Bell Potter, its analysts think that this fund manager is an ASX dividend share to buy.
The broker currently has a buy rating and $4.75 price target on its shares.
Its analysts highlight the company's positive growth outlook and cheap valuation. They said:
In recent years, Regal has expanded rapidly through strong investment performance, net flows into its funds, launches of new funds, and the acquisition or merger with VGI Partners, PM Capital and Taurus, which have expanded funds under management from $1.1bn in 2017, to over $12.1bn (March 2025). We continue to favour RPL, given its strong organic & inorganic growth potential, and entrepreneurial culture. In the last six months, and following the recent acquisition of PM Capital and Taurus (50%), the firm has shown an acceleration of inflows, strong investment performance (which will give rise to performance fees) and success in marketing new funds. We feel this strong performance is not reflected in the share price and see considerable upside.
In respect to income, Bell Potter is forecasting fully franked dividends per share of 20.3 cents in FY 2024 and FY 2025. Based on its current share price of $3.29, this represents dividend yields of 6.2%.
