Why these ASX dividend shares are best buys

Analysts at Bell Potter have good things to say about these stocks.

| More on:
A smiling woman holds a Facebook like sign above her head.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors that are on the lookout for ASX dividend shares to buy, might want to hear what Bell Potter is saying about the two listed below.

It has named them as buys on its favoured list and is forecasting some good dividend yields in the near term. Here's what you need to know about these picks:

Aspen Group Limited (ASX: APZ)

The first ASX dividend share that Bell Potter is tipping as a buy is Aspen Group. It is a leading provider of quality affordable accommodation across residential, land lease, and holiday park communities.

The broker likes the company due to its strong track record, high inside ownership, and positive outlook. It commented:

The business has a sector agnostic, high ROE focus on sub-sectors that are nonfungible and repeatable over time. APZ co-CEO's hold a large combined stake in the business (c.8%), the company has delivered 20% EPS growth last 5 years, and based on guidance (notwithstanding 11% higher SOI) is expecting to grow 9% in FY25. Still, the valuation is undemanding (7% discount to NTA; 13.5x 1yr forward PE vs. 15.1x sector average) and we think an improving residential macro back drop will only further boost APZ as it works towards ASX300 inclusion in time.

As for dividends, Bell Potter is forecasting dividends per share of 9.5 cents in FY 2025 and then 10.3 cents in FY 2026. Based on the current Aspen share price of $2.11, this will mean dividend yields of 4.3% and 4.8%, respectively.

The broker has a buy rating and $2.40 price target on its shares.

Rural Funds Group (ASX: RFF)

A second ASX dividend share that could be a best buy according to Bell Potter is Rural Funds.

It is a property company that owns a portfolio of assets across a number of agricultural industries such as orchards, vineyards, water entitlements, cropping, and cattle farms.

Bell Potter is a fan of the company. Its analysts see a lot of value in its shares at current levels and expect attractive dividend yields. They said:

RFF trades at a historical high discount to its market NAV per unit ($2.78 pu) at ~28%. While we are in general seeing large discounts to NAV in ASX listed farming and water assets to market NAV, the discount that RFF is trading appears excessive and we are seeing a valuable opportunity in RFF. While the timing of that value discount closing is difficult to call, investors are likely to be rewarded with a ~6% yield to hold the position until such a time as the asset class rerates. Furthermore, RFF aims to achieve income growth through productivity improvements, conversion of assets to higher and better use along with rental indexation which is built into all of its contracts with its tenants.

The broker is forecasting dividends per share of 11.7 cents in FY 2025 and 12.2 cents in FY 2026. Based on the current Rural Funds share price of $2.00, this will mean yields of 5.85% and 6.1%, respectively.

Bell Potter has a buy rating and $2.50 price target on its shares.

Should you invest $1,000 in Carbon Revolution right now?

Before you buy Carbon Revolution shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Carbon Revolution wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

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 positions in and has recommended Aspen Group. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Aspen Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

The sea's vastness is rivalled only by the refreshing feel of the drinks two friends share as they saunter along its edge, symbolising passive income.
Dividend Investing

Which ASX 200 bank stock pays the most passive income?

What’s the best ASX 200 bank to invest for passive income?

Read more »

A man looking at his laptop and thinking.
Dividend Investing

Here's the ANZ dividend forecast through to 2027

It looks like we might have seen the peak for this bank's dividends.

Read more »

A smiling woman holds a Facebook like sign above her head.
Dividend Investing

Bell Potter names the best ASX dividend shares to buy in May

Bell Potter thinks these are among the best shares for income investors to buy right now.

Read more »

A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.
Dividend Investing

Hoping to bank the next dividend from NAB shares? Better hurry…

NAB shares will pay an interim dividend of 85 cents per share next month.

Read more »

Person pressing the buy button on a smartphone.
Dividend Investing

I think these 2 ASX dividend shares are buys for income in May

These stocks have plenty going for them.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

Accelerate passive income: 2 LICs with dividend yields above 7%

With several rate cuts on the horizon, term deposits are starting to look less attractive.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Dividend Investing

Brokers name the ASX dividend stocks to buy now

These stocks have been given buy ratings by analysts. Here's what you need to know.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Dividend Investing

Why is the Westpac share price falling for a fourth consecutive day?

The Westpac share price is down by more than 4% today.

Read more »