Buy Best ASX Dividend Shares Offering 6%+ Yields According to Bell Potter
Synopsis
Broker Bell Potter has identified Harvey Norman and Rural Funds Group as two ASX dividend shares offering attractive income potential for investors. Harvey Norman is forecast to deliver fully franked dividend yields as high as 7.6% over the next two years, while Rural Funds is expected to provide yields around 6%. Analysts believe both companies offer different forms of income exposure through retail property and agricultural assets, even as higher interest rates and economic uncertainty continue to affect broader market conditions.
Two ASX dividend shares are expected to provide a high income over the next two financial years. Broker Bell Potter’s analysts promote Harvey Norman Holdings and Rural Funds Group as two ASX dividend shares with upcoming income opportunities.
Key Highlights
- Bell Potter rates Harvey Norman, Rural Funds shares as buy
- Harvey Norman's dividend yield forecast to be 7.6%
- Rural Funds estimated yields of 6%
- Bell Potter rates both stocks as a buy
- Analysts perceive long-term earnings opportunities notwithstanding economic vulnerabilities
Harvey Norman As A Strong Income Pick
According to Bell Potter, Harvey Norman could be a surprisingly robust ASX dividend share for income investors. The company retails across furniture, appliances, bedding, electronics, and household products while also benefiting from a large property portfolio. It gives the company an additional source of earning as compared to the other retailers.
The trading conditions for Harvey Norman remain difficult due to high interest rates and high cost of living pressure, which continue to reduce consumer spending, especially on non-essential goods. But Bell Potter still believes Harvey Norman is a well positioned stock which will have increased earnings and deliver solid results.
The broker predicts fully franked dividends of 29.8 cents a share in FY26 and 33.5 cents in FY27. Assuming its current share price, that would equate to yields of around 6.7% and 7.6%, respectively. Bell Potter has a buy rating and a $6.70 price target on the stock.
Agricultural income exposure via Rural Funds
Another ASX dividend share that Bell Potter has highlighted as appealing for income investors is Rural Funds Group. Its portfolio includes cattle farms, almond orchards, macadamia plantations, vineyards and cropping assets.
Rural Funds doesn’t operate farms itself but leases its assets to operators and receives rental income under long-term lease contracts. This structure could offer more stable revenues than a traditional farming business, which is fully dependent on commodity prices and seasonal production fluctuations.
The company also provides investors with exposure to farmland and agricultural infrastructure, Which May be positively affected by a decade-long international wave of demand for food production and productive land assets.
Risks Remain Despite Attractive Yields
Despite all that, Rural Funds is not without risk, Bell Potter said. Investor sentiment and earnings outlook are influenced by interest rates, tenant performance, asset valuations & even weather. Still, the broker views the company as an alternative to traditional dividend-focused sectors such as banks, miners, and telcos.
The broker also estimates dividends of 11.7 cents per share for FY26 and FY27. This equates to a dividend yield of 6% based on Rural Funds’ current share price of $1.98. Bell Potter has a buy rating and $2.50 price target on the shares.
Dividend Shares Remain In Focus For Income Investors
Many Australians are continuing to look for reliable passive income opportunities as economic uncertainty persists, helping keep high-yield ASX dividend shares firmly on investors’ radar. Analysts say businesses with solid cash flow, strong asset backing and dependable earnings could remain attractive even as higher interest rates and inflation continue putting pressure on broader markets.
Harvey Norman and Rural Funds have both attracted attention from income-focused investors, offering exposure to different sectors through retail property and agricultural infrastructure while also delivering relatively strong projected dividend yields.
FAQs
- What dividend ASX shares does Bell Potter currently favour?
Bell Potter has a buy rating on Harvey Norman and Rural Funds Group. What is the ownership of Rural Funds Group?
- Why do analysts like Rural Funds for income investors?
But its structure is based on long-term leases, making it a more stable and predictable rental income stream.
- What are the risks that could come between these dividend shares and their payouts?
Impact of higher interest rates, softer consumer demand, tenant performance and asset valuations on returns.
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