Income investors looking to bolster their portfolios with reliable dividend shares have a wealth of options on the Australian Securities Exchange (ASX). Among these, two companies have caught the attention of analysts who are bullish on their potential: Cedar Woods Properties Ltd (ASX: CWP) and Flight Centre Travel Group Ltd (ASX: FLT).
Cedar Woods Properties: A Strong Contender Amid Housing Shortages
Analysts at Bell Potter have identified Cedar Woods Properties as a promising ASX dividend share. The property developer is highly rated due to its robust market position amidst Australia’s acute housing shortages. Bell Potter highlights the company’s impressive 35-year track record of earnings delivery and its experienced management team.
“CWP has a substantial pipeline of residential projects amidst Australia’s extreme housing shortage, record presales, and positive forward commentary from a historically conservative management team. We are attracted to the current valuation – trading below NTA (versus a long-term average premium of +30%) and at a forward PE of 11x, which undervalues its double-digit growth profile.”
In terms of income, Bell Potter forecasts fully franked dividends of 33 cents per share in FY 2026, rising to 36 cents per share in FY 2027. With Cedar Woods’ current share price at $7.64, these dividends translate to yields of 4.3% and 4.7%, respectively. The broker maintains a buy rating with a price target of $8.75.
Flight Centre Travel Group: Poised for a Turnaround
Meanwhile, analysts at Morgans see potential in Flight Centre Travel Group, despite challenging trading conditions. The travel agent giant is expected to benefit significantly once the economic environment improves. Morgans notes that while the company’s FY25 results were mixed, with weaker-than-expected corporate performance, the leisure and other segments showed strength.
“FLT’s guidance for a flat 1H26 was stronger than we expected, however, it was weaker than consensus. Earnings growth is expected to accelerate in the 2H26 from an improvement in macro-economic conditions and internal business improvement initiatives. We are buyers of FLT during this period of short-term uncertainty and share price weakness because when operating conditions ultimately improve, both its earnings and share price leverage to the upside will be material.”
For dividends, Morgans predicts fully franked payouts of 51 cents per share in FY 2026 and 58 cents per share in FY 2027. Based on Flight Centre’s current share price of $12.07, these figures suggest dividend yields of 4.2% and 4.8%, respectively. Morgans has issued a buy rating with a price target of $15.65.
Market Context and Historical Comparisons
The recommendations for Cedar Woods and Flight Centre come at a time when investors are increasingly seeking stable income amid economic uncertainties. Historically, dividend stocks have been a refuge for investors during volatile market periods, providing both income and potential capital appreciation.
Both Cedar Woods and Flight Centre have shown resilience in their respective sectors. Cedar Woods, with its extensive experience and strategic project pipeline, is well-positioned to capitalize on the current housing demand. Flight Centre, on the other hand, is banking on a recovery in the travel sector, which has been severely impacted by global events in recent years.
Looking Ahead: Implications for Investors
As the global economic landscape continues to evolve, the potential for growth in dividend yields from these companies presents an attractive opportunity for investors. The strategic positions of Cedar Woods in the property market and Flight Centre in the travel sector suggest that both companies could see significant upside as conditions improve.
Investors should consider these recommendations in the context of their broader investment strategies, keeping an eye on market developments and company performance. With analysts providing positive outlooks for both Cedar Woods and Flight Centre, these stocks could offer both income and growth potential in the coming years.
