The team at Bell Potter has made some significant changes to its Australian equities portfolio this month.

And the broker’s message is clear. Now could be a good time to increase exposure to quality.

Focus on quality ASX shares

Bell Potter notes that the S&P/ASX 200 index (ASX: XJO) has been one of the weaker major equity markets in 2026. But underneath the index, the falls have been much more severe, with a number of quality businesses down more than 20% despite relatively modest changes to earnings expectations.

It believes higher bond yields, subdued economic growth expectations, and concerns around artificial intelligence (AI) disruption have weighed on valuations more than company fundamentals.

This has created an opportunity to upgrade the quality of its portfolio, highlighting Charter Hall Group (ASX: CHC), Washington H. Soul Pattinson and Company Ltd (ASX: SOL), and Wesfarmers Ltd (ASX: WES) as opportunities. It explained:

The portfolio changes reflect a deliberate shift towards businesses with proven management teams, resilient earnings, strong balance sheets and long-term capital allocation credentials. Specifically, Soul Patts and Wesfarmers are proven high-quality capital allocators, providing a solid ballast in a portfolio and worthy of long-term ownership. Charter Hall, on the other hand, offers compelling value at a point when markets appear to be underappreciating the group’s long term growth potential.

Bell Potter also notes that it has been positioned for interest rates to remain higher for longer.

However, with that view now becoming more widely accepted and rate-sensitive sectors already de-rating, the broker believes valuations are starting to offer a margin of safety. It said:

Knowing equity markets look forward, we are neutralising our positioning given affected sectors have moved to factor in rate, policy and competitive headwinds, with valuations now representing a margin of safety. Collectively, these changes increase exposure to long-term structural growth, recurring earnings and proven capital allocators which have scope for long term value creation.

The buys

Bell Potter has added Charter Hall to gain exposure to a potential recovery in property capital markets.

The broker highlights the company’s $94 billion funds management platform and its exposure to office, industrial, retail, and social infrastructure.

It also likes that Charter Hall is not simply a traditional property owner. Its earnings are driven heavily by managing capital for institutional investors, giving the business a more scalable model. Bell Potter said:

CHC offers exposure to recovering property capital markets, growing institutional allocations to real assets and a high-quality funds management platform, underpinned by solid dividend growth averaging 6% per annum and a strong track record of long-term earnings growth.

Bell Potter is also buying Soul Patts shares, which it describes as Australia’s Berkshire Hathaway. It likes the company’s permanent capital base and ability to invest across listed shares, private businesses, credit, and real assets.

This gives management flexibility to deploy capital wherever it sees the best opportunities, including during periods of market weakness. It said:

SOL’s portfolio is deliberately diversified and increasingly liquid, providing the flexibility to capitalise on opportunities as they arise. The group’s strong balance sheet, permanent capital base and extensive deal flow allow it to invest counter-cyclically when others cannot.

Finally, Bell Potter has added Wesfarmers after its shares fell around 20% from their mid-year peak.

The broker believes this has created an opportunity to buy one of Australia’s highest-quality companies at a more attractive valuation.

It sees the investment case as extending beyond Bunnings and Kmart, with Wesfarmers also offering exposure to healthcare, lithium, and industrial businesses. Bell Potter said:

WES combines earnings resilience, growth optionality and disciplined capital allocation. Its portfolio spans household spending, housing, industrial demand and healthcare, reducing reliance on any single driver, while market-leading positions at Bunnings and Kmart generate defensive cash flows and healthcare, lithium and industrial technology investments provide additional growth avenues.

The post Why this top broker is buying Charter Hall, Soul Patts, and Wesfarmers shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Berkshire Hathaway and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Aurum Resources Ltd (ASX: AUE) have fallen just shy of 30% over the past 12 months, but according to the analysts at Bell Potter, that could be about to change.

They have released a new research report with a speculative buy recommendation on the company and a very bullish share price target, which I’ll get to shortly.

Firstly, let’s take a look at what’s been making news for the company recently.

Excellent exploration results boosting confidence

Aurum on 1 October announced that it had hit the best gold intercept to date at its Boundiali Gold Project in Côte d’Ivoire.

The company received assays back from eight drill holes, with one returning an intercept of 28.8m at 22.9 grams per tonne of gold from a depth of 204m.

Aurum said the drilling also confirmed that the gold mineralisation at the site remained open.

The company is expecting to release a new mineral resource estimate for Boundiali in the fourth quarter of the calendar year, incorporating drilling that was completed in September.

This would be followed by a definitive feasibility study expected in late 2026.

The company currently has a mineral resource estimate of 3.22 million ounces of gold at Boundiali and 1.2 million ounces at its Napié Gold Project.

Aurum has a current cash balance of $95 million.

Aurum Managing Director Dr Caigen Wang said regarding the company’s future plans:

This cash and our own diamond rig fleet places us in a strong position to advance drilling, studies and permitting concurrently at Boundiali. We received environmental approval in May and delivered the Pre-Feasibility Study and Maiden Ore Reserve in June. Our focus now is grant of the Mining Licences and completion of the DFS, with the goal of finalising funding and starting construction in early 2027, targeting first gold from Boundiali in the first half of 2028.

Aurum raised $52.5 million in September at 55 cents per share to progress its exploration program.

ASX gold shares looking cheap

Bell Potter said the company received “high-quality support” for the raise, including from Shandong Gold, which was a top 10 global mining company.

They added that strategic investors now accounted for about 25% of Aurum’s share register.

Bell Potter said further:

AUE is one of the most successful gold exploration companies active in West Africa. Its management team has a demonstrated track record of discovery, resource growth, project construction, development, operation and divestment. AUE is well-funded, has outlined a compelling development project at Boundiali with substantial exploration upside.

Bell Potter has a price target of $1.45 on Aurum shares compared to 51 cents at the time of writing.

If achieved, this would constitute upside of 184.3%. Aurum is valued at $255.6 million.

The post Could this ASX gold developer really rise 180%? appeared first on The Motley Fool Australia.

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• Is this cheap ASX dividend share one of the best income buys?
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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortunately for income investors, there are lots of ASX dividend shares to choose from on the local bourse.

To narrow things down, let’s take a closer look at one dividend share that analysts at Bell Potter think could be among the best to buy now.

Which ASX dividend share is a buy?

The dividend share that Bell Potter is recommending to clients is Rural Funds Group (ASX: RFF).

It is an agricultural property company with a portfolio focused on almond orchards, vineyards, cattle, cotton and macadamias. 

Its assets are some of the most productive in the industry and leased to high quality tenants including Treasury Wine Estates Ltd (ASX: TWE), Olam, JBS, and Select Harvests Ltd (ASX: SHV). 

Bell Potter notes that Rural Funds’ shares have pulled back meaningfully since providing disappointing AFFO guidance. 

The broker thinks this has created a buying opportunity given the positive backdrop in agricultural land valuations. It said:

Since providing disappointing FY27e AFFO guidance the share price of RFF has been under pressure, this is despite the favourable backdrop in agricultural land valuations and RFF having executed asset sales to create balance sheet capacity, with further sales planned.

The latest Bendigo bank agricultural land values report (for 1HCY26) looked to confirm resilience in agricultural valuation, with the median transaction value up +8% YoY […]  The report notes that further farmland appreciation is anticipated 2HCY26 amidst supportive commodity markets, however, the re-escalation of input cost pressures, further interest rate rises and the dry weather outlook combine to provide a weaker outlook for growth from CY27.

Big returns and generous dividend yields

According to the note, Bell Potter has retained its buy rating and $2.55 price target on the ASX dividend share.

Based on its current share price of $1.93, this implies potential upside of 32% for investors over the next 12 months.

In addition, Bell Potter is expecting dividend yields of 6.1% in FY 2027, FY 2028, and FY 2029.

Commenting on its buy recommendation, the broker said:

Our Buy rating is unchanged. During FY26 RFF contracted to dispose of $315m in assets at an 18% premium to BV. While this is a positive, there remains $356m worth of assets under development or operated, where there is limited income being generated. Execution of further asset sales, including mature and operated macadamia orchards and leasing of properties undergoing productivity enhancements would likely be catalysts for improvedAFFO and the share price. The 41% discount to Market-NAV and 34% discount to NAV are both all-time highs and material deviations from historical averages.

The post Is this cheap ASX dividend share one of the best income buys? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.