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:
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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.
