While the interest rates on offer with term deposits are improving, they still don't compare to the potential returns on offer in the share market.
For example, the three ASX shares below offer attractive yields and the potential for strong capital gains.
Here are the three options to consider:
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ANZ Group Holdings Ltd (ASX: ANZ)
This banking giant's shares could be far better than its term deposits. In fact, the yield on offer with its shares could be among the biggest in the ASX 200 in FY 2023 if Citi's forecasts prove accurate. The broker is forecasting a $1.66 per share fully franked dividend this year, which represents a yield of almost 7.4%.
The broker also sees huge upside potential for its shares with its buy rating and $29.25 price target.
Macquarie Group Ltd (ASX: MQG)
If you're not keen on the big four banks then Macquarie could be another great alternative to term deposits. This is due to Macquarie being arguably one of the highest quality companies in the country with a very positive long term outlook. This is underpinned by the quality and diversity of its operations and its talented management team.
Morgans is very positive and has a $222.80 price target on its shares. It is also forecasting a 4.7% dividend yield in FY 2023.
Telstra Group Ltd (ASX: TLS)
Telstra could be a good option for income investors. Although times have been hard for the telco giant, things are improving rapidly now. Especially given easing competitive pressures, the arrival of 5G, and its new T25 strategy. The latter replaces the highly successful T22 strategy and has a focus on sustainable growth.
Goldman Sachs currently has a buy rating and $4.60 price target on its shares. It is also expecting a 4.1% fully franked dividend yield this year.
