While term deposit rates are improving, they still don't compare to some of the yields on offer with ASX dividend shares. Nor do they offer potential capital gains.
Two dividend shares that offer both big yields and potential capital gains are named below. Here's why they could be better than term deposits:
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Centuria Industrial REIT (ASX: CIP)
The first ASX dividend share that could be a top option for passive income is Centuria Industrial.
It is an industrial-focused property company that owns a $3.9 billion portfolio of high-quality, fit-for-purpose industrial assets. These in-demand assets are situated in key in-fill locations and close to key infrastructure.
UBS is very positive on the company and is expecting it to pay dividends per share of 16 cents in both FY 2023 and FY 2024. Based on the current Centuria Industrial share price of $3.15, this represents yields of 5.1% for both years.
UBS has a buy rating and $3.68 price target on the company's shares.
Dalrymple Bay Infrastructure Ltd (ASX: DBI)
Another ASX dividend share that has been named as a buy is Dalrymple Bay Infrastructure.
It is an infrastructure company and the long term operator of the Dalrymple Bay Coal Terminal (DBCT), providing terminal infrastructure and services for producers and consumers of Australian coal.
Dalrymple Bay Infrastructure has been tipped to pay big dividends in the near term. This is thanks to strong demand for coal and its position as the cheapest export route-to-market for users within its Bowen Basin catchment region.
Citi, for example, is forecasting dividends per share of approximately 20.6 cents in FY 2023 and 21.6 cents in FY 2024. Based on the latest Dalrymple Bay Infrastructure share price of $2.56, this will mean very generous yields of 8% and 8.5%, respectively.
The broker has a buy rating and $2.80 price target on its shares.
