Bell Potter names the best ASX dividend shares to buy in December

If you are looking for the very best ASX dividend shares to buy, then read on!

That’s because the two listed below have just been named as high conviction buys by the team at Bell Potter. Here’s what the broker is saying about them:

Harvey Norman Holdings Ltd (ASX: HVN)

Bell Potter thinks that this retail giant could be one of the best ASX dividend shares to buy now. It has a buy rating and $8.30 price target on its shares.

Although its shares have rallied strongly over the past 12 months, the broker believes they are still good value. Especially when you factor in its property portfolio. It explains:

As a leading household goods retailer in Australia and growing presence globally, Harvey Norman has seen modest growth in its independent franchisee base in Australia and expanded its company operated global store print over the last 5 years. We see HVN as one of the most diversified retailers in terms of both categories and regions, while benefitting from both as a quasi-retailer/landlord and channel mix via company operated stores and franchising.

Despite the strong re-rate in the name, HVN trades at ~2.0x market capitalisation to freehold property value as Australia’s single largest owner in large format retail with a global portfolio surpassing $4.5b and collectively owning ~40% of their stores (franchised in Australia and company operated offshore). This sees our view that of the 1-year forward ~19x P/E multiple as justified considering the multiple catalysts near/mid-term.

Bell Potter expects fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. Based on its current share price of $7.24, this would mean dividend yields of 4.25% and 4.9%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that Bell Potter thinks could be one of the best to own is Universal Store. The broker has a buy rating and $10.50 price target on its shares.

Bell Potter is a big fan of the youth fashion retailer due to its attractive valuation and positive growth outlook. The latter is being underpinned by its store rollout and increasing private label product penetration. It said:

Universal is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI has ~85 stores under its flagship ‘Universal Store’ brand and is expanding private label brands by growing the stand-alone format of ‘Perfect Stranger’ and ‘Thrills’ with more than 100 stores in total.

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution. While catalysts associated with further interest rate cuts for Australia in CY25 are not imminent post the third rate cut in August, we continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

Bell Potter is forecasting fully franked dividends of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.55, this would mean dividend yields of 4.35% and 4.8%, respectively.

The post Bell Potter names the best ASX dividend shares to buy in December appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.