With the Reserve Bank of Australia expected to cut interest rates further over the course of the year, term deposit rates are likely to be heading lower.
In light of this, investors may want to consider looking at ASX dividend stocks for their income needs.
But which stocks? Let's take a look at three that analysts rate as buys:
IPH Ltd (ASX: IPH)
The team at Morgans thinks that IPH could be an ASX dividend stock to buy.
IPH is one of the world's leading intellectual property services companies. Through numerous brands and online platforms, it assists companies with patents, trademarks, and legal protection.
Morgans believes the company is positioned to pay fully franked dividends of 35 cents per share in FY 2025 and then 36 cents per share in FY 2026. Based on the current IPH share price of $4.57, this will mean dividend yields of 7.6% and 7.9%, respectively.
The broker currently has an add rating and $6.30 price target on its shares.
National Storage REIT (ASX: NSR)
Another ASX dividend stock that analysts are positive on is National Storage.
It is the largest self-storage provider in Australia and New Zealand. It provides tailored storage solutions to almost 100,000 residential and commercial customers from over 260 centres.
Citi is positive on the outlook for the self-storage industry and believes National Storage is well-placed to pay dividends of 11.3 cents per share in FY 2025 and then 11.8 cents per share in FY 2026. Based on its current share price of $2.41, this equates to dividend yields of 4.7% and 4.9%, respectively.
The broker currently has a buy rating and $2.70 price target on its shares.
Telstra Group Ltd (ASX: TLS)
Finally, Telstra could be another ASX dividend stock to buy instead of term deposits.
The team at Macquarie is bullish on the telco giant. This is due to its Connected Future 30 strategy, which is believes shows that Telstra has "multiple cost-out levers & an ability to sustain mobile ARPUs."
It also believes that its "ROIC growth and focus on the core competitive advantage in network and connectivity signals operating leverage and momentum."
This is expected this to underpin fully franked dividends of 19.9 cents per share in FY 2025 and then 22 cents per share in FY 2026. Based on its current share price of $4.89, this equates to dividend yields of 4.1% and 4.5%, respectively.
Macquarie has an outperform rating and $5.28 price target on its shares.
