2 best ASX dividend shares to buy in December

If you’re looking for ASX dividend shares to buy, the two stocks listed below might be worth a look.

Their names are included in the Bell Potter Australian Shares List. These are the broker’s favorite Australian shares, which he believes offer attractive risk-adjusted returns over the long term.

Let’s see what the broker says about them:

Coles Group, LLC (ASX: COL)

The Bell Potter team believes Coles will be a great option for income investors.

It is, of course, one of Australia’s leading retailers, with over 1,800 outlets across the country.

Bell Potter is positive about Coles’ prospects due to lower costs, increased immigration and modernization of its supply chain. This explains:

Coles Group is a diversified retailer of food, liquor, petrol and financial services. Coles also retains a 50% stake in Flybuys. Costs are expected to remain high but should ease over FY24 and FY25 as headline inflation declines. Over the medium term, 1) higher levels of immigration should support food spending, and 2) Coles is entering a period of increased capex intensity as it reinvests in modernizing its supply chain and catching up with rivals in online and digital offerings, which should help Coles maintain its position in the market.

On the income side, the broker forecasts a total dividend yield of 3.8% over the next 12 months.

Transurban group (ASX:TCL)

Another ASX dividend share featured in Bell Potter’s Australian Shares roundup is Transurban.

It is a toll road operator that owns 22 key roads in Australia and North America. It also has three major projects expected to open by 2026 to improve connections within cities and help people get where they need to go.

Locally, its portfolio includes CityLink in Melbourne and the Cross City Tunnel in Sydney. In North America, its roads include 95 express lanes in Greater Washington and the A25 in Montreal, Canada.

Bell Potter believes Transurban is well positioned for growth with an inflation-linked earnings stream and significant growth potential. This explains:

We believe the current inflation environment is favorable for Transurban given its inflation-linked earnings stream with annual escalators. Moreover, TCL provides low-risk cash flows over the long term, with a long concession period (over 30 years) and relative traffic/revenue stability. The group’s current growth pipeline is $3.3 billion (TCL’s share of total project value) and huge development opportunities are expected over the next few decades, supported by population and economic growth.

Bell Potter forecasts a dividend yield of approximately 5% over the next 12 months.