Forget term deposits and buy these ASX dividend shares

Analysts think income investors should be buying these term deposit-busting shares.

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While the interest rates on term deposits have improved, they still fall short of the dividend yields available on the Australian share market.

In addition, with interest rates tipped to fall over the next 12 months, we might have already seen the peak for term deposits.

As a result, income investors may get better outcomes with the buy-rated ASX dividend shares named below. Here's what you need to know about them:

Accent Group Ltd (ASX: AX1)

The team at Bell Potter is feeling positive about Accent Group. It is the footwear retailer behind brands such as The Athlete's Foot, HYPEDC, and Sneaker Lab. Bell Potter currently has a buy rating and $2.50 price target on its shares.

As for those all-important dividends, Bell Potter is forecasting fully franked dividends per share of 12 cents in FY 2024 and then 14.1 cents in FY 2025. Based on the Accent share price of $2.12, this represents dividend yields of 5.7% and 6.65%, respectively.

Orora Ltd (ASX: ORA)

Goldman Sachs thinks investors should be buying this packaging company. It likes Orora due to its defensive qualities and positive growth outlook. The broker has a buy rating and $3.50 price target on its shares.

In respect to income, the broker has pencilled in dividends per share of 14 cents in FY 2024, 15 cents in FY 2025, and 16 cents in FY 2026. Based on the current Orora share price of $2.84, this will mean yields of 4.9%, 5.2%, and 5.6%, respectively.

Rural Funds Group (ASX: RFF)

This agricultural property company could be an ASX dividend share to buy according to analysts at Bell Potter. The broker currently has a buy rating and $2.40 price target on its shares.

As for dividends, Bell Potter is forecasting dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.22, this will mean yields of 5.3% for investors.

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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Accent Group and Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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