Investors looking for ASX shares with strong dividend growth potential might want to take note of the three listed below.
These companies are not only offering attractive dividend yields today but are also forecast to deliver increasing dividend payments in the coming years.
Analysts at Bell Potter have given all three shares a buy rating, highlighting their attractive valuations and positive growth outlooks. Here's what you need to know:
A top ASX share for income investors could be Accent Group. It is a leading retailer that dominates Australia's $3 billion leisure footwear market, boasting over 800 stores, 34 owned brands, and a strong online presence. Currently, Accent commands approximately 30% market share, positioning it as a key player in the athleisure space.
Bell Potter is bullish about Accent Group's growth trajectory, driven by its exclusive brands and expanding market influence. The broker expects this to support fully franked dividends of 13.7 cents per share in FY 2025 and then 15.6 cents per share in FY 2026. Based on the company's current share price of $2.10, this equates to dividend yields of 6.5% and 7.4%, respectively.
Bell Potter has a buy rating and $2.75 price target on the company's shares.
Regal Partners is another ASX share that could be worth considering for dividend growth. It is a leading Australian alternative investment manager.
Bell Potter believes Regal Partners is well-positioned to generate growing dividends thanks to its strong investment performance.
The broker is forecasting fully franked dividends of 14.6 cents per share in FY 2024 and 18.1 cents per share in FY 2025. Based on its current share price of $3.75, these figures represent dividend yields of 3.9% and 4.8%, respectively.
Bell Potter has a buy rating on Regal Partners shares with a price target of $4.85.
Youth fashion retailer Universal Store is the third ASX share that Bell Potter believes could be a great dividend growth investment.
The broker highlights Universal Store's strong earnings trajectory, supported by store rollouts, brand expansion, and increasing private label product penetration, which currently sits at approximately 46%. These factors are expected to drive margin expansion and robust dividend growth.
Bell Potter forecasts fully franked dividends of 31.4 cents per share in FY 2025 and then 36.8 cents per share in FY 2026. With Universal Store's current share price at $8.35, these estimates equate to dividend yields of 3.75% and 4.4%, respectively.
Bell Potter has a buy rating on Universal Store shares with a price target of $8.85.
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