These ASX dividend shares have yields that beat term deposits

Fed up of low interest rates? Check out these ASX dividend shares…

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If you’re looking for a way to beat the low rates on term deposits, then you may want to look at the ASX dividend shares listed below.

Both these shares are expected to provide yields that are far greater than those on offer with term deposits. Here’s what you need to know:

Adairs Ltd (ASX: ADH)

Adairs is a leading retailer of homewares and home furnishings in the ANZ market. It has a strong presence both in retail parks across Australia and online with its Adairs and Mocka brands.

The company has been a particularly positive performer this year. This has been driven by its strong market position, the housing market boom, and a favourable redirection in consumer spending. This underpinned very strong sales and profit growth during the first half, with more of the same expected in the second half.

And while FY 2022 will be tough due to the company cycling heightened sales this year, a return to solid growth is expected in FY 2023.

Analysts at Goldman Sachs are forecasting fully franked dividends per share of 26 cents in FY 2021, 25.1 cents in FY 2022, and then 26.8 cents in FY 2023. Based on the current Adairs share price of $3.99, this will mean yields of 6.5%, 6.3%, and 6.7%, respectively.

BWP Trust (ASX: BWP)

BWP Trust is the largest owner of Bunnings Warehouse sites in Australia. At the last count, it leased a total of 68 warehouses to the hardware giant.

Thanks to the stunning success of the Bunnings business, BWP has delivered solid earnings and dividend growth over the last few years. In addition, Bunnings’ performance during the pandemic has been especially pleasing, allowing BWP to collect rent as normal over the last 18 months

In light of this, BWP expects to pay a full year distribution of ~18.3 cents per share in FY 2021. Based on the current BWP share price of $4.23, this equates to an attractive 4.3% dividend yield.

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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 recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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