On Tuesday, the Reserve Bank of Australia (RBA) finally cut the cash rate, taking it down 25 basis points from 4.35% to 4.1%.
This could be the first of up to four interest rate cuts by the RBA this year according to the market.
While this is great news for borrowers, it isn't what savers and income investors want to hear.
But don't worry, because there are plenty of quality ASX dividend shares out there that could help investors beat falling interest rates.
Here are three buy-rated options to look at:
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Cedar Woods Properties Limited (ASX: CWP)
Cedar Woods could be an ASX dividend share to buy right now. It is one of Australia's leading property developers with a portfolio that is diversified by geography, price point, and product type.
Morgans rates the company highly and believes it is well-placed for double-digit growth this year. The broker highlights that "looking forward, the signs are positive, with guidance for +10% NPAT growth in FY25, supported by favorable operating conditions in most key states."
The broker expects this to support dividends per share of 27 cents in FY 2025 and then 33.3 cents in FY 2026. Based on its current share price of $5.43, this equates to 5% and 6.1% dividend yields, respectively.
Morgans currently has an add rating and $6.70 price target on the company's shares.
Endeavour Group Ltd (ASX: EDV)
Goldman Sachs thinks that Endeavour Group could be an ASX dividend share to buy. It is the owner of Australia's largest drinks retail network. This includes Dan Murphy's and BWS, as well as a substantial portfolio of licensed hotels.
The broker highlights that its analysts "continue to see Endeavour as a high-quality retailer gaining share amid a category down-cycle, with resilient growth opportunities in Hotels."
As for income, the broker is forecasting fully franked dividends of 19 cents per share in FY 2025 and 22 cents per share in FY 2026. Based on its current share price of $4.45, this means dividend yields of 4.25% and 4.9%, respectively.
Goldman has a buy rating and a price target of $5.10 on Endeavour shares.
IPH Ltd (ASX: IPH)
Finally, Goldman Sachs also sees IPH as an ASX dividend share to buy. It is a leading intellectual property services company that operates across the globe.
It likes IPH due to its defensive earnings and positive growth outlook. The broker expects this to support fully franked dividends of 36 cents per share in FY 2025 and then 39 cents per share in FY 2026. Based on the current IPH share price of $4.73, this will mean dividend yields of 7.6% and 8.2%, respectively.
Goldman has a buy rating and $7.50 price target on its shares.
