At a time when the RBA official cash rate is coming down, I think ASX dividend shares that offer a good dividend yield can also be a pleasing choice.
I'm not expecting savings accounts and term deposits to offer as good of an interest rate as they do now, so investors may be drawn to the appeal of businesses that stronger yields and they can grow their payouts further in the coming years.
That's one of the main benefits of investing in companies over holding cash because they can deliver earnings growth, justifying a higher share price and funding larger payouts over time.
With that in mind, I'll point out two ASX dividend shares with pleasingly large dividend yields which are expected to hike their payouts soon.
APA Group (ASX: APA)
This business owns a significant energy portfolio of assets. Its main asset is a major network of gas pipelines around the country – it transports half of the country's gas usage. It also has gas processing facilities, gas storage and gas-powered energy generation.
APA also has solar farms, wind farms, batteries and electricity transmission assets. It connects Victoria with South Australia, Tasmania with Victoria and New South Wales with Queensland.
The business has steadily added to its portfolio through acquisitions and building some itself. This is helping grow its cash flow, which is then funding larger payments to investors. Another tailwind for earnings is that a significant majority of its revenue is linked to inflation, meaning its top line is organically growing (and saw a boost in the last few years).
It has grown its distribution every year for the past 20 years, making it one of the most consistent ASX dividend shares in terms of growth.
APA is expecting to grow its distribution by 1.8% in FY25 to 57 cents per security, which translates into a forward distribution yield of 6.9%.
Accent Group Ltd (ASX: AX1)
This ASX dividend share is one of the largest footwear retailers in Australia. It acts as a distributor for a number of brands including Skechers, Vans, Hoka, Herschel and Ugg. The business also has a number of its own businesses including The Athlete's Foot, Platypus, Stylerunner and more.
The business is growing the number of brands that it works with – in FY26 it will be working with Dickies and Lacoste. Accent also recently announced it has been granted the right by Frasers Group to launch and operate the Sports Direct business in Australia and New Zealand, with a plan to roll-out at least 50 stores in six years and ultimately reach at least 100 stores.
Accent will also gain access to Frasers' owned brand portfolio to sell within Sports Direct and other Accent stores including Everlast, Lonsdale, Slazenger, Karrimor, USA Pro and Hot Tuna.
I think the business can deliver solid profit growth in the coming years as it opens new stores across its various existing brands, as well as new brands.
According to the forecast on Commsec, the Accent grossed-up dividend yield is 9.75%, including franking credits. Earnings are predicted to jump in FY26, which could be helped by RBA interest rate cuts. It's trading at under 11x FY26's estimated earnings, according to Commsec.
