In an image that says more than words ever could, a smiling woman holding a Facebook ‘like’ sign above her head captures the current mood among Australian income investors. Amidst global uncertainty, rising interest rate chatter, and ever-fluctuating commodity markets, dividend-paying ASX shares remain a cornerstone for those seeking steady, passive income. According to analysts at Bell Potter, three companies currently stand out in the crowd: Harvey Norman Holdings Ltd, Nickel Industries Ltd, and Whitehaven Coal Ltd.
Let’s dive into why these three dividend heroes are earning a big ‘thumbs up’ from experts and what that could mean for your investment portfolio.
1. Harvey Norman Holdings Ltd (ASX: HVN)
Retail heavyweight Harvey Norman is riding a promising wave. Bell Potter views the stock’s valuation as attractive, especially given its exposure not only to furniture retailing but also to a sizeable land portfolio that many investors overlook. As Australia’s housing market inches toward recovery, aided by the potential for Reserve Bank rate cuts and improved consumer sentiment, HVN is well-positioned to benefit from higher demand for big-ticket items such as home electronics and furnishings.
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Analysts are particularly optimistic about how rising disposable income and a buoyant property market could drive spending in Harvey Norman’s core segments. This aligns with the company’s fundamentals: a strong brand presence, integrated retail model, and property holdings that act as a balance sheet buffer.
Dividend forecast:
- FY25: 4.7%
- FY26: 5.2%
Both fully franked
These yields may not be the highest on the ASX, but they are underpinned by a stable business model, attractive valuation, and inflation-resistant assets — all of which are key criteria for cautious income investors.
2. Nickel Industries Ltd (ASX: NIC)
For those with a taste for resources and a stronger appetite for growth, Nickel Industries Ltd could be the standout pick.
Nickel is a critical component in electric vehicle (EV) batteries and stainless steel manufacturing, and Australia holds a prominent position in the global supply chain. Interestingly, Australia also hosts 80% of the world’s known niobium, a niche but increasingly vital metal in aerospace and clean tech sectors, further highlighting the strategic role of the country in critical mineral exports.
Back to nickel — Bell Potter points out that NIC remains the only material way to gain ASX-listed exposure to the metal. Despite recent headwinds in the nickel market, the company is generating positive cash flows and is set to hit major growth milestones by 2025. NIC is expanding across both Type 1 and Type 2 nickel, offering investors a diversified exposure within the metal’s evolving use cases.
Dividend forecast:
- FY25: 6.25%
- FY26: 15%
With a potential doubling of dividend yield in just one year, this stock offers compelling upside for yield-focused investors who are comfortable with a bit more volatility.
3. Whitehaven Coal Ltd (ASX: WHC)
Coal may be controversial, but for investors focused on cash flow, Whitehaven Coal is still a strong contender.
The company’s outlook remains robust, especially for metallurgical coal, which is essential for steelmaking. Bell Potter highlights India’s growing demand and a tightening global supply base as tailwinds for long-term coal prices. Moreover, WHC is actively deleveraging its balance sheet, thanks in part to the expected completion of the Blackwater selldown.
Productivity enhancements and cost reductions across its Queensland portfolio should help sustain profitability. While Whitehaven’s dividend forecast isn’t as eye-catching as NIC’s, the yields are still respectable — especially considering the company’s ongoing efforts to streamline operations and return value to shareholders.
Dividend forecast:
- FY25: 3%
- FY26: 2%
Given the long-term price support for metallurgical coal, WHC offers a lower-yielding but more stable income stream backed by global infrastructure demand.
Investor Outlook
While Harvey Norman, Nickel Industries, and Whitehaven Coal serve different sectors, they share several things in common: strong balance sheets, exposure to macroeconomic themes (housing recovery, electrification, industrialization), and management teams committed to returning capital to shareholders.
For investors who prioritise fully franked dividends — and there are many in Australia thanks to the franking credit system — these three stocks offer a mix of stability and growth that could suit varying risk appetites.
Bell Potter’s endorsement gives these companies a further vote of confidence. But as always, investors should conduct their own due diligence and consider personal financial goals before making any move.
Still, if you’re smiling at the idea of regular income and potential capital gains — and maybe even feel like holding up your own Facebook ‘like’ sign — these ASX dividend shares may just deserve a place in your watchlist.
