Although the yields on term deposits have improved significantly over the last 12 months, they still don't compare to some of the dividend yields you can find on the Australian share market.
For example, as well as decent upside potential, analysts are forecasting big yields from these ASX dividend shares in the near term. Here's what they expect:
QBE Insurance Group Ltd (ASX: QBE)
Goldman Sachs believes that this insurance giant is in the buy zone. This is because it believes that rates "earned over the next 12 months will like be well ahead of moderating inflation to offset reinsurance / perils cost pressure and likely support improving underlying trends."
The broker currently has a buy and $18.34 price target on QBE's shares.
In respect to dividends, the broker is forecasting dividends of 60 US cents (92 cents) per share in FY 2024 and 62 US cents (95 cents) per share in FY 2025. Based on the current QBE share price of $14.77, this will mean yields of 6.2% and 6.4%, respectively.
Rural Funds Group (ASX: RFF)
Another ASX dividend share that could offer term deposit-beating yields is agricultural property company Rural Funds.
Bell Potter is very positive on the company. It notes that its shares are trading at their "largest discount to market NAV since listing."
The broker currently has a buy rating and a $2.40 price target on its shares.
As for income, its analysts are forecasting dividends per share of 11.7 cents in FY 2024 and FY 2025. Based on the current Rural Funds share price of $1.95, this will mean yields of 6% for investors.
Universal Store Holdings Ltd (ASX: UNI)
Youth fashion retailer Universal Store could be another ASX dividend share to buy.
That's the view of analysts at Morgans, which believe its shares are "undervalued" at current levels. The broker has an add rating and a $4.25 price target on its shares.
As for dividends, Morgans is forecasting fully franked dividends of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on the latest Universal Store share price of $3.50, this equates to yields of 7.4% and 8.3%, respectively.
