Bell Potter names 2 of the best ASX dividend stocks to buy

Let's find out why the broker is feeling bullish on these names.

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If you are searching for ASX dividend stocks to buy this month, then it could be worth listening to what Bell Potter is saying about the two in this article.

That's because they have been named on the broker's Australian equities panel. These are the stocks it believes offer attractive risk-adjusted returns over the long term.

Here's what the broker is saying about these income options:

Aspen Group Limited (ASX: APZ)

The first ASX dividend stock that features on the broker's Australian equities panel is Aspen Group

It is a leading provider of quality affordable accommodation across residential, land lease, and holiday park communities.

Bell Potter likes the company due to its attractive valuation, positive growth runway, and index inclusion potential. Commenting on Aspen Group, the broker said:

Aspen Group specialises in providing affordable accommodation and is one of Bell Potter's top picks in the real estate space, with a positive runway supported by undersupply in the Australian housing market. Valued at a small discount to NTA and trading at a lower PE compared to the sector average, Aspen is well-positioned for potential upside as it targets ASX 300 inclusion.

In respect to income, Bell Potter is forecasting dividends per share of 10 cents in FY 2025 and then 10.3 cents in FY 2026. Based on the current Aspen share price of $2.57, this will mean dividend yields of 3.9% and 4%, respectively.

Transurban Group (ASX: TCL)

Another ASX dividend stock that Bell Potter has named on its Australian equities panel is Transurban.

It is a toll road operator with a high-quality portfolio of roads across Australia and North America. This includes CityLink in Melbourne and the Eastern Distributor in Sydney.

Bell Potter believes the company is well-positioned to benefit from its inflation-linked revenue stream and its growth pipeline. The broker explains:

We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience.

The group's current pipeline of growth projects is $3.3 billion (TCL's share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.

As for income, Bell Potter is forecasting a dividend yield of approximately 4.9% from Transurban's shares over the next 12 months.

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 Transurban 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.

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