If you are looking for ASX dividend shares to buy, then it could be worth checking out the ones listed below.
They have been named on Bell Potter's Australian equities panel this month. The broker notes that this panel is home to its favoured Australian equities that offer attractive risk-adjusted returns over the long term.
Let's take a look at two dividend shares that feature on the list this month:
Bell Potter is feeling very positive on BHP. It is of course one of the world's largest miners with operations across a range of commodities. This includes iron ore, potash, nickel, coal, and copper.
It is the latter commodity, copper, that is getting Bell Potter the most excited. It also highlights its exposure to further potential Chinese economic stimulus. It explains:
BHP presents an attractive investment proposition, providing exposure to both copper and the potential upside from further Chinese stimulus measures. BHP is one of the top three global producers of copper and has the largest copper endowment of any company globally. BHP operates the Escondida mine in Chile, where they have a 57.5% ownership stake.
The broker is forecasting a fully franked dividend yield of approximately 4.5% over the next 12 months.
Another ASX dividend share that gets the thumbs up from analysts at Bell Potter is Transurban. It is a toll road operator with a collection of important roads across Australia and North American. This includes CityLink in Melbourne, the Cross City Tunnel in Sydney, and AirportlinkM7 in Brisbane.
Bell Potter believes that Transurban is well-placed in the current environment due to its inflation-linked revenue stream. It also likes the company due to its significant growth pipeline, which should be support of dividend growth in the future.
Another positive is its multi-decade development opportunity, which is being supported by population growth. The broker said:
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.
Bell Potter is forecasting a dividend yield of approximately 4.9% over the next 12 months.
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