Forget term deposits and buy these ASX dividend shares

These dividend shares have been tipped by analysts to provide investors with yields that are superior to term deposits.

| More on:
Person holding Australian dollar notes, symbolising dividends.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

While the yields on offer from term deposits are a lot more attractive than they were a couple of years ago, they still don't match up to some of the dividend yields available on the Australian share market.

So, if your risk tolerance allows for it, it could pay to invest in shares rather than term deposits. But which ASX dividend shares?

Three buy-rated ASX dividend shares that are tipped to provide investors with 5%+ yields are listed below. Here's why they could be worth considering:

Accent Group Ltd (ASX: AX1)

The team at Bell Potter is expecting some big yields and major upside from Accent Group's shares. It is a footwear focused retailer with over 800 stores across a large number of brands. This includes Sneaker Lab, Platypus, Stylerunner, and The Athlete's Foot.

Bell Potter currently has a buy rating and $2.50 price target on its shares.

As for that all-important income, the broker is expecting fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the latest Accent share price of $1.80, this represents dividend yields of 7.2% and 8.1%, respectively.

Stockland Corporation Ltd (ASX: SGP)

The team at Citi thinks that Stockland could be an ASX dividend share to buy.

It is a property company that develops, owns, and manages retail centres, business parks, logistics centres, office buildings, residential communities, and retirement living villages.

Much like Accent, the broker expects some very attractive and term deposit-busting yields from its shares in the near term. The broker is forecasting dividends per share of 26.2 cents in FY 2024 and then 26.6 cents in FY 2025. Based on the current Stockland share price of $4.65, this will mean yields of 5.6% and 5.7% yields, respectively.

Citi currently has a buy rating and $5.20 price target on its shares.

Transurban Group (ASX: TCL)

A third ASX dividend share that is tipped to provide better yields than term deposits is Transurban.

It is a toll road giant with a growing number of important roads across both Australia and North America. This includes the Cross City Tunnel and Eastern Distributor in Sydney, and CityLink and the West Gate Tunnel Project in Melbourne.

Citi is a fan of the company and is forecasting dividends per share of 63 cents in FY 2024 and 65 cents in FY 2025. Based on the current Transurban share price of $12.43, this will mean yields of 5.1% and 5.2%, respectively.

Citi has a buy rating and $15.50 price target on its shares.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Transurban Group. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

This ASX dividend share is predicted to pay a 12% yield in 2026!

This stock could be a significant dividend payer in the years ahead.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

Analysts name 3 high yield ASX dividend stocks to buy

These stocks are tipped to provide larger than average yields in the near term.

Read more »

Five happy young friends on the coast, dabbing and raising their arms in the air.
Dividend Investing

Tax-busters: 5 fully-franked ASX dividend shares I'd buy for FY25

Fully-franked dividends can save you paying some tax this year...

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Dividend Investing

Brokers name 3 ASX dividend shares to buy

Income investors might want to check out these companies.

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Dividend Investing

2 ASX shares with shareholder-friendly policies

Meet these two ASX dividend shares with excellent track records.

Read more »

Stethoscope with a piggy bank and hundred dollar notes.
Dividend Investing

Medibank shares: Here's the dividend yield you'll get today

Medibank stock offers a decent dividend yield today.

Read more »

A man clasps his hands together while he looks upwards and sideways pondering how the Betashares Nasdaq 100 ETF performed in the 2022 financial year
Dividend Investing

Does DroneShield stock pay dividends?

Dividends would be the cherry on top for DroneShield's lucky investors.

Read more »

A smartly-dressed businesswoman walks outside while making a trade on her mobile phone.
Dividend Investing

Why Telstra and these excellent ASX dividend stocks could be buys

Analysts have put buy ratings on these income stocks. Here's what sort of yields they are forecasting.

Read more »