Although the yields on savings accounts and term deposits improved materially in 2023, they still don't compare to some of the dividend yields you can find on the Australian share market.
In addition, there's no prospect of capital gains from saving accounts or term deposits, whereas the ASX dividend shares listed below have been tipped to rise from current levels.
Together with their big yields, this arguably makes them a great alternative for income investors right now. Here's what analysts are saying about them:
Accent Group Ltd (ASX: AX1)
The first ASX dividend share that could be a good alternative to term deposits is Accent Group. It is the name behind a large number of footwear-focused retail store brands including The Athlete's Foot, Stylerunner, and HYPEDC.
Bell Potter is very positive on the company's growth outlook and has a buy rating and a $2.50 price target on its shares.
In addition, it is forecasting fully franked dividends per share of 11.1 cents in FY 2024 and then 13 cents in FY 2025. Based on the current Accent share price of $1.94, this represents dividend yields of 5.7% and 6.7%, respectively.
Dexus Industria REIT (ASX: DXI)
Another ASX dividend share that could be a buy for income investors is Dexus Industria. It is a real estate investment trust with a focus on industrial warehouses.
Morgans sees it as a good option for investors due to the positive outlook for industrial rents. Its analysts have an add rating and a $3.18 price target on its shares.
In respect to income, the broker is forecasting dividends per share of 16.4 cents in FY 2024 and 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $2.78, this will mean dividend yields of 5.9% and 6%, respectively.
Universal Store Holdings Ltd (ASX: UNI)
Morgans is also positive on this youth fashion retailer and sees it as an ASX dividend share to buy. Particularly given its "attractive array of medium-term growth prospects."
Its analysts have an add rating and a $4.55 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 $4.25, this equates to yields of 6.1% and 6.8%, respectively.
