With the rates on offer with term deposits falling this year and likely to keep falling over the next 12 months, the Australian share market could be the place to be for income investors.
But which ASX 200 dividend shares could be good alternatives to term deposits? Let's take a look at three that analysts rate as buys:
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IPH Ltd (ASX: IPH)
The first ASX 200 dividend share that analysts are tipping as a buy is IPH.
It is a leading intellectual property (IP) services company operating a number of brands, including AJ Park, Smart & Biggar, and Spruson & Ferguson.
The team at Morgans is positive on the company, particularly given its attractive valuation. It recently noted that "IPH's valuation is undemanding (~10.8x FY25F PE), however investor patience is required given the delivery of organic growth looks to be the catalyst for a re-rating."
In respect to dividends, the broker is expecting fully franked payouts 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 $5.25, this will mean dividend yields of 6.7% and 6.9%, respectively.
Morgans has an add rating and $6.30 price target on its shares.
Transurban Group (ASX: TCL)
Another ASX 200 dividend share that could be a good alternative to term deposits is Transurban.
It is a toll road operator that owns a portfolio of high-quality assets across Sydney, Melbourne, Brisbane, and North America. In Australia, this includes CityLink in Melbourne, the Cross City Tunnel in Sydney, and AirportlinkM7 in Brisbane.
UBS sees Transurban as one to buy now for income. It is forecasting dividends per share of 65 cents in FY 2025 and then 69 cents in FY 2026. Based on its current share price of $13.78, this would mean dividend yields of 4.7% and 5%, respectively.
The broker currently has a buy rating and $14.85 price target on its shares.
Treasury Wine Estates Ltd (ASX: TWE)
Finally, Treasury Wine could be an ASX 200 dividend share to buy according to analysts.
It is the wine giant behind popular brands such as Penfolds, Wolf Blass, Blossom Hill, and Wynns.
While trading conditions have been tough recently, the team at Morgans remains positive on the company. The broker highlights that "while not without risk given industry and macro headwinds, TWE's trading multiples look far too cheap (FY25/26 PE of only 13.6/12.6x) and we maintain a BUY rating."
As for income, Morgans is forecasting partially franked dividends of 39.5 cents in FY 2025 and then 42.3 cents in FY 2026. Based on its current share price of $7.53, this would mean dividend yields of 5.25% and 5.6%, respectively.
The broker currently has a buy rating and $10.25 price target on its shares.
