UPDATE: Two leading ASX dividend shares have just been identified by Bell Potter as prime investment opportunities for December 2023. With the stock market fluctuating, now is the time to consider these potential high-yield investments.
Harvey Norman Holdings Ltd (ASX: HVN) stands out as a top pick. This household goods retailer is recognized for its extensive diversification across categories and regions. Bell Potter highlights its robust property portfolio, stating, “Despite the strong re-rate in the name, HVN trades at ~2.0x market capitalisation to freehold property value.” The company boasts a global portfolio exceeding $4.5 billion, owning around 40% of its stores. With a current share price of $7.32, Bell Potter has set a price target of $8.30, suggesting significant upside potential.
Looking to the dividends, investors can expect fully franked payouts of 30.9 cents per share for FY 2026 and 35.3 cents for FY 2027. This translates to estimated dividend yields of 4.2% and 4.8%, respectively, making it an attractive option for income-focused investors.
In addition, Universal Store Holdings Ltd (ASX: UNI) is another strong recommendation from Bell Potter. This youth-focused apparel retailer, operating around 85 stores, is expanding its brand presence significantly. With a current share price of $8.41, Bell Potter has a price target of $10.50, indicating a favorable valuation compared to its peers.
Bell Potter asserts that UNI is trading at approximately 18x FY26e P/E, well below the ASX300 peer group average, reflecting its undervalued status. The broker forecasts fully franked dividends of 37.3 cents per share in FY 2026 and 41.4 cents in FY 2027, leading to projected yields of 4.4% and 4.9%.
These insights come at a crucial time as investors seek robust dividend opportunities. With potential interest rate cuts on the horizon, particularly following the recent rate cut in August, these companies are poised to benefit from a youth demographic increasingly drawn to on-trend streetwear.
As the market evolves, these two ASX dividend shares present compelling investment prospects, especially for those looking to enhance their portfolios this December. Watch for further developments as analysts continue to monitor market conditions and corporate performance.
Stay tuned for more updates on this evolving story and consider these recommendations for your investment strategy.
