If your spare cash is still sitting in a savings account, you might want to take a closer look at what it is really doing for you — because it probably isn't much.
With the Reserve Bank of Australia expected to cut interest rates a number of times this year, the already modest returns on most savings accounts are about to get even worse. While falling rates might be good news for mortgage holders, it is not ideal if you're trying to grow your money.
The good news? The ASX is home to some high-quality dividend shares offering far better yields than most bank accounts — and they come with the added bonus of potential capital growth.
Here are two that analysts at Goldman Sachs currently think could be smarter alternatives to leaving your cash idle. They are as follows:
GQG Partners Inc. (ASX: GQG)
If you're chasing big dividend yields, then GQG Partners is one to consider. The global fund manager continues to grow its funds under management and reward shareholders along the way.
Goldman Sachs currently has a buy rating and $3.00 price target on its shares. This is significantly higher than its current share price of $2.08. It notes that its "valuation remains appealing with GQG trading ~7x on 1-year forward P/E (using spot FX)."
In addition, the broker is expecting GQG Partners to pay shareholders dividends of 14 US cents per share in FY 2025 and then 16 US cents per share in FY 2026. Based on current exchange rates, this will mean massive dividend yields above 10% in both years.
Telstra Group Ltd (ASX: TLS)
Another ASX dividend share that Goldman Sachs rates as a buy is Telstra. Australia's largest telecommunications company has long been a go-to for income-focused investors — and for good reason.
Telstra's defensive earnings, market-leading infrastructure, and strategic exposure to high-growth segments like data centres and mobile networks make it a dependable option for those looking for income without the stress.
Goldman thinks so and has a buy rating and $4.50 price target on its shares.
As for income, the broker is forecasting fully franked dividends of 19 cents per share in FY 2025 and then 20 cents per share in FY 2026. Based on its current share price of $4.43, that gives you a fully franked dividend yields of approximately 4.3% and 4.5%, respectively.
